Tenant Wins Costs Recovery After Successful Tenancy Tribunal Application

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[2025] NZTT 9060764

TENANCY TRIBUNAL AT CHRISTCHURCH | TE TARAIPIUNARA RETIHANGA KI ŌTAUTAHI

APPLICANT: [redacted]

RESPONDENT: [redacted]

UNIT ADDRESS: Unit 1E2, [ADDRESS], [POSTCODE], Bianco

ORDER

1. [NAME] and [NAME] must pay [NAME] $19,997.30 immediately, being costs following the Tribunal’s order made on 3 December 2024.

2. The respondents’ application for costs is dismissed.

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Reasons:

1. The order follows the Tribunal’s order made on 3 December 2024 following the hearing of the parties’ applications on 27 November 2024.

2. The Tribunal’s order made on 3 December awarded costs to the [NAME] ([NAME]) because it was successful in its application.

3. The [NAME] has filed submissions on costs and the respondents have filed submissions in response. The respondents’ submissions do not deal in any way with the [NAME]’s costs submissions. They are concerned with the [NAME]’s substantive application. The respondents have also claimed costs. The usual rule is that costs follow the event, meaning that the unsuccessful party pays the successful party’s costs. There is no reason to depart from that rule in this case and because the respondents are the unsuccessful party, their application for costs is dismissed.

4. Under s127 of the Unit Titles Act 2010 (the Act), where a unit owner has rendered necessary any act by the [NAME] due to the unit owner’s breach of the Act, the [NAME] is entitled to recover any reasonable costs incurred by it in doing the act. In this case, the Tribunal has decided that the respondents breached the Act by erecting a partition wall in the unit. That necessitated the [NAME] taking action to remedy the breach including bringing this application.

5. In terms of legal costs, the [NAME] is entitled to recover its reasonable indemnity costs.

6. The [NAME]’s lawyers, [NAME] ([NAME]), have provided their time records. At the hourly rates of the fee earners concerned the time recorded produces total fees of $14,251. The only thing that I find unreasonable about that is the time claimed for second counsel at the hearing. I do not suggest that [NAME] did not contribute to the hearing, but given [NAME]’s significant involvement with the file, it should not have been necessary for her to attend, and it is not reasonable for the respondents to pay for her attendance.

7. The deduction is $375 which reduces the fees to $13,876. The [NAME] has claimed, in addition, the cost of attending the hearing. But that is included in the time records and so no additional award is required.

8. Because the [NAME] has succeeded with its application, it is entitled to recover the $500 filing fee.

9. Regarding other disbursements, the [NAME] withdrew its claim for $253 relating to GoFox’s invoice.

10.The only other disbursement shown on [NAME]’s invoice that I have awarded is the $12 Landonline search fee. The other costs on the invoice are overheads, and I do not accept that it is reasonable to expect the respondents to pay them.

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11. I have awarded the other disbursements claimed. I had some doubts about the [NAME] invoice given that [NAME] dealt with the application from start to finish. But I accept that the [NAME] required advice early in the piece and therefore the cost is reasonable. I was also unsure about the first [NAME] invoice because it predated [NAME]’s involvement. But I accept that it was necessary and reasonable for the [NAME] to investigate the effect of the partition wall on the building’s fire safety. That makes it recoverable under a127 of the Act.

12.The [NAME] is registered for GST and so it can recover the GST on the fees and disbursements as input tax. I have therefore not awarded the GST element of them.

13.The following is a breakdown of the costs awarded.

[NAME] $13,876.00

Filing fee $500.00

Landonline search fee $12.00

[NAME] $576.80

[NAME] 9226 $1,500

[NAME] 9458 $3,532.50

Total $19,997.30

[NAME] 08 April 2025

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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.

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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