How much money was awarded in case 9067604?

BC Manager Debt Collection Fees: $6,527.50 awarded to landlord; Filing Fee: $500.00 awarded to landlord; Interest: $2,589.46 awarded to landlord; Ordinary Levies: $40,915.73 awarded to landlord; PBB Appearance Fees: $632.50 awarded to landlord; PBB Legal Charges For Proceedings: $8,386.88 awarded to landlord

What type of tenancy dispute was case 9067604?

The primary dispute was Cleanliness. Related themes: Unit Titles, Ordinary Levy, Costs, Interest.

Where can I read the official tribunal order for case 9067604?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/12290717-UTA_Tribunal_Order.pdf.

How much money was awarded in case 9067604?

BC Manager Debt Collection Fees: $6,527.50 awarded to landlord; Filing Fee: $500.00 awarded to landlord; Interest: $2,589.46 awarded to landlord; Ordinary Levies: $40,915.73 awarded to landlord; PBB Appearance Fees: $632.50 awarded to landlord; PBB Legal Charges For Proceedings: $8,386.88 awarded to landlord

What type of tenancy dispute was case 9067604?

The primary dispute was Cleanliness. Related themes: Unit Titles, Ordinary Levy, Costs, Interest.

Where can I read the official tribunal order for case 9067604?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/12290717-UTA_Tribunal_Order.pdf.

Browns Bay, Auckland Tenancy Tribunal Case 9067604 — Cleanliness

Q: What was Tenancy Tribunal case 9067604 about?

The tribunal order states: Luxury Living Apartments Trust Limited must pay Body Corporate 555807 $59,552.07

Order

Luxury Living Apartments Trust Limited must pay Body Corporate 555807 $59,552.07 immediately, calculated as follows: DescriptionsApplicant Ordinary Levies$40,915.73 BC manager debt collection fees$6,527.50 PBB legal charges for proceedings$8,386.88 Interest$2,589.46 PBB appearance fees$632.50 Filing Fee$500.00 Total award$59,552.07

Reasons

Claims and awards in Tenancy Tribunal application 9067604. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Ordinary Levies	$40,915.73	Ordinary Levies
BC manager debt collection fees	$6,527.50	BC manager debt collection fees
PBB legal charges for proceedings	$8,386.88	PBB legal charges for proceedings
Interest	$2,589.46	Interest
PBB appearance fees	$632.50	PBB appearance fees
Filing Fee	$500.00	Filing Fee

May Naidoo, counsel, of Price Baker Berridge Lawyers appeared for the body corporate.

Victor Jia appeared for the owner.

Luxury Living owns 12 units in this development. Unfortunately, it has been unable to pay its ordinary levies for the unit.

The body corporate applies for recovery of the unpaid levies, interest on the overdue levies, and its recovery costs.

Does Luxury Living owe the levies claimed?

Body corporates need to raise levies to run the development. The levies pay for repairs, cleaning, expenses, long term maintenance, and other costs.

Unit owners must pay all body corporate levies payable for the unit. 1 If a unit owner does not pay their share of the levies, the other unit owners suffer.

The body corporate calculated the levies unit owners had to pay based on their utility interests. The body corporate has fixed the due dates for the levies to be paid. However, the unit owner did not pay the levies by that date. 2

The body corporate has provided records that prove the amount claimed for levies and the owner did not contest its calculation.

Is Luxury Living liable for interest?

When a unit owner fails to pay levies by the due date, interest accrues on the unpaid balance. A body corporate may charge interest up to 10 percent per annum. 3

The body corporate has resolved to charge interest at per annum on unpaid levies. The Body Corporate has proved the amount of interest owing from the due date to the hearing date.

Is Luxury Living liable for costs?

The Body Corporate is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to the Body Corporate. 4 The Tribunal must order that the debtor pay the body corporate’s reasonable costs incurred in recovering the levies, objectively assessed.

The costs the body corporate claims are reasonable except for the body corporate manager’s charges to the body corporate $4,200.00 to handover its files to Price Baker Berridge. 1 Unit Titles Act 2010 (UTA) ss 80(1)(f) and 121(1) . 2 UTA s 124(1). 3 UTA s 128 4 UTA s 124 UTA. Body Corporate 346799 v Gueirard & Vu [2023] NZDC 19645 at [18] – [24].

The 15 July 2024 AGM minutes record that where the body corporate must take steps to recover overdue levies the “debt administration fees” will be $330.00 plus GST for Stages 2 and 3 debt recovery. That figure represents a set fee for the body corporate manager’s attendances. The set fee amount is not unreasonable even if in this case the body corporate manager would have benefitted from being able to duplicate the steps given there was one unit owner of 12 units.

However, there is no mention in the AGM minutes of a $350.00 handover “debt administration” fee. Nor has the body corporate provided any document that it had agreed to a set handover charge. A fixed charge for a single unit of $350.00 might be reasonable, but here where there is a handover for 12 units of a straightforward debt collection the fee is unreasonable. If an hourly rate of $126.50 is used as a benchmark, the $4,200.00 charged for the handover represents 33 hours work. That much work would clearly not be required. If the body corporate agreed to that charging structure, it should not have done so (at least if it expected a defaulting unit owner to reimburse it for the handover fees) because it is not a “reasonable cost”.

It is appropriate reduce the body corporate manager’s charges for handover by 50 per cent. $2,100.00 is within the appropriate range of fees and costs for handing over this matter to lawyers for enforcement in the Tribunal. The body corporate manager’s costs are therefore awarded in the sum of $6,527.50 (rather than the $8,627.59 sought).

The unit owner must reimburse the body corporate for the filing fee. 5

Claims and awards in Tenancy Tribunal application 9067604. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Ordinary Levies	$40,915.73	Ordinary Levies
BC manager debt collection fees	$6,527.50	BC manager debt collection fees
PBB legal charges for proceedings	$8,386.88	PBB legal charges for proceedings
Interest	$2,589.46	Interest
PBB appearance fees	$632.50	PBB appearance fees
Filing Fee	$500.00	Filing Fee

Order

Reasons

May Naidoo, counsel, of Price Baker Berridge Lawyers appeared for the body corporate.
Victor Jia appeared for the owner.
Luxury Living owns 12 units in this development. Unfortunately, it has been unable to pay its ordinary levies for the unit.
The body corporate applies for recovery of the unpaid levies, interest on the overdue levies, and its recovery costs.

Does Luxury Living owe the levies claimed?

Body corporates need to raise levies to run the development. The levies pay for repairs, cleaning, expenses, long term maintenance, and other costs.
Unit owners must pay all body corporate levies payable for the unit. 1 If a unit owner does not pay their share of the levies, the other unit owners suffer.
The body corporate calculated the levies unit owners had to pay based on their utility interests. The body corporate has fixed the due dates for the levies to be paid. However, the unit owner did not pay the levies by that date. 2
The body corporate has provided records that prove the amount claimed for levies and the owner did not contest its calculation.

Is Luxury Living liable for interest?

When a unit owner fails to pay levies by the due date, interest accrues on the unpaid balance. A body corporate may charge interest up to 10 percent per annum. 3
The body corporate has resolved to charge interest at per annum on unpaid levies. The Body Corporate has proved the amount of interest owing from the due date to the hearing date.

Is Luxury Living liable for costs?

The Body Corporate is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to the Body Corporate. 4 The Tribunal must order that the debtor pay the body corporate’s reasonable costs incurred in recovering the levies, objectively assessed.
The costs the body corporate claims are reasonable except for the body corporate manager’s charges to the body corporate $4,200.00 to handover its files to Price Baker Berridge. 1 Unit Titles Act 2010 (UTA) ss 80(1)(f) and 121(1) . 2 UTA s 124(1). 3 UTA s 128 4 UTA s 124 UTA. Body Corporate 346799 v Gueirard & Vu [2023] NZDC 19645 at [18] – [24].
The 15 July 2024 AGM minutes record that where the body corporate must take steps to recover overdue levies the “debt administration fees” will be $330.00 plus GST for Stages 2 and 3 debt recovery. That figure represents a set fee for the body corporate manager’s attendances. The set fee amount is not unreasonable even if in this case the body corporate manager would have benefitted from being able to duplicate the steps given there was one unit owner of 12 units.
However, there is no mention in the AGM minutes of a $350.00 handover “debt administration” fee. Nor has the body corporate provided any document that it had agreed to a set handover charge. A fixed charge for a single unit of $350.00 might be reasonable, but here where there is a handover for 12 units of a straightforward debt collection the fee is unreasonable. If an hourly rate of $126.50 is used as a benchmark, the $4,200.00 charged for the handover represents 33 hours work. That much work would clearly not be required. If the body corporate agreed to that charging structure, it should not have done so (at least if it expected a defaulting unit owner to reimburse it for the handover fees) because it is not a “reasonable cost”.
It is appropriate reduce the body corporate manager’s charges for handover by 50 per cent. $2,100.00 is within the appropriate range of fees and costs for handing over this matter to lawyers for enforcement in the Tribunal. The body corporate manager’s costs are therefore awarded in the sum of $6,527.50 (rather than the $8,627.59 sought).
The unit owner must reimburse the body corporate for the filing fee. 5

Tenancy Tribunal case 9067604 — Cleanliness in Browns Bay, Auckland

At a glance

Tenancy Tribunal case 9067604 — Cleanliness in Browns Bay, Auckland

At a glance

Claims & awards

Order

Reasons

Does Luxury Living owe the levies claimed?

Is Luxury Living liable for interest?

Is Luxury Living liable for costs?

Topics & place

Residential Tenancies Act sections

Key findings

Property management

Frequently asked questions

Claims & awards

Order

Reasons

Does Luxury Living owe the levies claimed?

Is Luxury Living liable for interest?

Is Luxury Living liable for costs?

Topics & place

Residential Tenancies Act sections

Key findings

Property management

Frequently asked questions