Successful Recovery of Unpaid Levies and Costs in Tenancy Tribunal Case

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[2025] NZTT 9059644

TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA

APPLICANT: [redacted]

RESPONDENT: [redacted] Owner

UNIT ADDRESS: Unit/[ADDRESS], [POSTCODE]

ORDER

1. [NAME] must pay [NAME] $39,575.39 immediately, calculated as follows:

Descriptions Applicant Respondent

Overdue levies $10,913.32 Overdue metered charges $1,418.87 Overdue oncharges $7,152.61 Section 124 / 127 costs including GST and disbursements (First Claim)

$13,659.35

Section 124 costs including GST and disbursements (Second Claim)

$4,966.64

Appearance at hearing ($250.00 per hour x 1 hour approximately, plus GST)

$287.50

Filing Fee $500.00 Interest to 19 March 2025 $677.10 Total award $39,575.39 Total payable by Respondent to Applicant

$39,575.39

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Reasons:

1. The representative for the applicant attended the hearing which was held by teleconference. The Tribunal was unable to contact the respondent on the contact number provided. I am satisfied that adequate service of the hearing notice had been completed and deemed it reasonable to proceed with the hearing in the respondent’s absence.

2. [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the Unit Owner.

Does the Unit Owner owe the levies and additional charges claimed?

3. A Unit Owner must pay all [NAME] levies and outgoings payable for the unit. See sections 80(1)(f) and 121(1) Unit Titles Act 2010.

4. [NAME] has determined the levies payable and Unit Owner's share has been calculated according to their utility interest.

5. [NAME] has fixed the due date for the levies to be paid, and the Unit Owner has not paid the levies by that date. See section 124(1) Unit Titles Act 2010.

6. The Unit Owner also owes additional charges under sections 125, 126, and 127 of the Act. The metered electricity charges were properly incurred and remain outstanding. Likewise, oncharges relating to necessary repairs, including leak issues, shower repairs, waterproofing, and smoke detector reinstallation, were properly imposed under sections 126(2) and 127(2) of the Act. These oncharges, are validly recoverable.

7. [NAME] has provided records to prove the amounts claimed.

Is the Unit Owner liable for interest?

8. If a Unit Owner fails to pay levies by the due date, interest accrues on the unpaid balance. A [NAME] may charge interest up to 10% per annum. See section 128 Unit Titles Act 2010.

9. [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 hearing date.

Is the Unit Owner liable for costs?

10.Pursuant to section 124 UTA, and as resolved at meetings of [NAME] is entitled to recover any reasonable costs incurred by it in

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collecting unpaid levies as a debt due by the owner to [NAME]. In accordance with the judgments (of the District Court and Court of Appeal respectively) in [NAME] 162791 v [NAME] DC Auckland, CIV2014-004- 0120, 24 June 2014 and [NAME] 162791 v Gilbert [2015] NZCA 185, the Tribunal must order that the reasonable costs incurred by [NAME] in recovering the levies, objectively assessed, be paid by a defaulting unit owner.

11. The Unit Owner was previously subject to a Tenancy Tribunal order (NZTT 9044364) dated 15 September 2023 (the First Order). While that order addressed certain outstanding amounts, further enforcement costs were incurred by [NAME] in securing compliance. A High Court Sale Order was sealed on 12 April 2024, but enforcement costs beyond that order were not previously adjudicated. Under section 127 of the Act, these costs remain recoverable.

12. Legal precedent supports the recovery of such costs. In [NAME] 331094 v Smith [2015] NZDC 17745, Judge Harrison held that legal fees incurred in pursuing payment of levies were recoverable under section 127 of the Act. Similarly, in [NAME] v [NAME] 137295 NZDC 30820, Judge Sharp upheld a Tenancy Tribunal decision that allowed the recovery of costs incurred in enforcing an order. These rulings confirm that [NAME] is entitled to reimbursement for its expenses in seeking payment from the Unit Owner.

13. I am satisfied that the costs ordered above are reasonable.

14.As [NAME] has succeeded with the claim, I have reimbursed the filing fee. Section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.

[NAME] 19 March 2025

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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