Claimant Wins Levy Recovery Case Against Unit Owner

OUTCOME: Allowed

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[2026] NZTT 9079404

TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA

APPLICANT: [redacted] [NAME]

RESPONDENT: [redacted] Owner

[NAME]: Units A & H, [ADDRESS], [POSTCODE]

ORDER

1. [COMPANY] must pay [NAME] $6,056.41 immediately, calculated as follows:

Description Applicant Respondent

[NAME] collection costs $2,185.00

Solicitor costs (includes 35min hearing) $3,096.80 Interest 9 September 2025 to 23 February 2025

$274.61

Filing Fee $500.00 Total award $6,056.41 Total payable by Respondent to Applicant

$6,056.41

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Reasons:

1. Both parties attended the hearing. [NAME] represented [NAME]. [NAME] represented the [NAME].

2. At an AGM on 5 August 2025, [NAME] determined the levies payable for the year 12 September 2025 to 12 September 2026. The [NAME], [COMPANY]’, share for two units ([NAME] A and [NAME] H) totalled $6,002.03 and were due for payment on 9 September 2025.

3. [COMPANY] did not pay the levies when due and [NAME]’s professional [NAME] manager, [COMPANY] ([COMPANY]), incurred costs to collect the levies. When the debt was still not paid, [NAME] instructed [NAME] to recover it.

4. The outstanding levies were paid in full on 23 February 2026 and [NAME] has applied for recovery of interest, costs and the filing fee from [COMPANY].

Is [COMPANY] liable for interest?

5. If a [NAME] fails to pay levies by the due date, interest accrues on the unpaid balance. A [NAME] may charge interest up to 10% per annum: section 128 of the [NAME] Act 2010 (the Act).

6. [NAME] has resolved to charge interest at 10% per annum on unpaid levies. [NAME] has proved the amount of interest owing from the due date to the date the levies were paid.

7. Ms [COUNSEL] claims that she spoke to a [NAME] representative on 4 November 2025 about the unpaid levies and she believes that the person she spoke to (she thinks it may have been [NAME] from [COMPANY]) agreed to give [COMPANY] three months to pay the levies and agreed to not claim the penalty interest.

8. I am not satisfied that Ms [NAME] has provided sufficient evidence to support her claim that [NAME] waived the right to claim interest on the unpaid levies. The evidence provided by Ms [NAME], in particular an email from Ms [NAME] to Ms [NAME] dated 5 November, requesting payment of the outstanding levies makes no mention of any agreement to waive the right to claim interest or for delayed payment of the levies.

9. I therefore find [COMPANY] liable for the interest claimed.

Is [COMPANY] liable for costs?

10. Pursuant to section 124 of the [NAME] Act 2010 (the Act) [NAME] is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to [NAME]. In accordance with the judgments in [NAME] 162791 v [NAME] DC Auckland, CIV2014-004-0120, 24 June 2014, [NAME] 162791 v Gilbert [2015] NZCA 185, and more

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recently [NAME] 346799 v [NAME] [2023] NZDC 19645, the Tribunal must order that the reasonable costs incurred by [NAME] in recovering the levies, objectively assessed, be paid by a defaulting [NAME].

11. [NAME] provided invoices for the administration fees and for solicitors’ fees that establish the costs incurred to recover the levies. Ms [NAME] outlined, in her submissions, the work done by [COMPANY] in an attempt to collect the levies for the two units. Time sheets were also provided outlining the work completed by [NAME] and the time spent in attempting to recover the unpaid levies, costs and interest. I am satisfied that the costs claimed are reasonable.

12. Ms [NAME] claims that she was unaware that if she did not pay the levies the debts would be handed over to solicitors for collection and further costs would be incurred. She said that she was unaware of the further costs claimed until after this application was filed.

13. However, the correspondence provided in evidence does not support her claim. Ms [NAME] from [COMPANY] emailed Ms [NAME] (and others) on 1 December 2025 warning [COMPANY] that if the levies are not paid by 4 December 2025 an application would be made to the Tribunal and this will incur further costs. Ms [NAME] claims that she did not receive the email, but she confirmed that the email address used was correct. The debt was handed to [NAME] for collection on 19 January 2026 and that same day they emailed Ms [NAME] (and others) demanding that [COMPANY] pay the outstanding levies, costs and interest by 26 January. If it failed to do so legal proceedings may be filed with further costs recoverable from [COMPANY]. As mentioned, the levies were not paid until 23 February 2026. [NAME] sent a similar demand letter on 25 February 2026 requesting payment of their fees to date, [COMPANY]’s fees, and interest.

14. I am therefore satisfied that [COMPANY] is liable for the costs claimed.

15. [NAME] has been fully successful in its claim and is therefore entitled to payment of the filing fee: Section 176(1) of the Act and section 102(4) Residential Tenancies Act 1986.

[NAME] 03 June 2026

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Please read carefully:

SHOULD YOU REQUIRE ANY HELP OR INFORMATION REGARDING THIS [COMPANY] [PHONE].

MEHEMA HE PĀTAI TĀU E PĀ ANA KI TENEI TAKE, PĀTAI ATU KI TE [COMPANY] [PHONE].

AFAI E TE MANA’OMIA SE FESOASOANI E UIGA I LENEI MATAUPU FA’AMOLEMOLE IA FA’AFESO’OTAI’I LOA LE OFISA O LE [COMPANY] [PHONE].

Rehearings:

You may make an application to the Tenancy Tribunal for a rehearing. Such an application must be made within five working days of the order and must be lodged at the Court where the dispute was heard.

The only ground for a rehearing of an application is that a substantial wrong or miscarriage of justice has or may have occurred or is likely to occur. Being unhappy or dissatisfied with the decision is not a ground for a rehearing. (See ‘Right of Appeal’ below).

Right of Appeal:

If you are dissatisfied with the decision of the Tenancy Tribunal, you may appeal to the District Court. You only have 10 working days after the date of the decision to lodge a notice of appeal.

However, you may not appeal to the District Court:

1. Against an interim order made by the Tribunal. 2. Against an order, or the failure to make an order, for the payment of money where the

amount that would be in dispute on appeal is less than $1,000. 3. Against a work order, or the failure to make a work order, where the value of the work

that would be in dispute on appeal is less than $1,000.

There is a $200.00 filing fee payable at the time of filing the appeal.

Enforcement:

Where the Tribunal made an order that needs to be enforced then the party seeking enforcement should contact the Collections Office of the District Court on [PHONE] or go to www.justice.govt.nz/fines/civil-debt for forms and information.

Notice to a party ordered to pay money or vacate premises, etc:

Failure to comply with any order may result in substantial additional costs for enforcement. It may also involve being ordered to appear in the District Court for an examination of your means or seizure of your property.

http://www.justice.govt.nz/fines/civil-debt