Tribunal Orders Unit Owner to Pay Levies and Associated Costs

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[2025] NZTT 9061844

TENANCY TRIBUNAL AT AUCKLAND | TE TARAIPIUNARA RETIHANGA KI TĀMAKI MAKAURAU

APPLICANT: [redacted]

RESPONDENT: [redacted] Owner

UNIT ADDRESS: Unit/Flat 226 2U, [ADDRESS], [ADDRESS], [POSTCODE], Citta

ORDER

1. [NAME] must pay [NAME] the sum of $75,039.86 immediately, calculated as follows:

Descriptions Applicant Respondent

Annual levies $16,475.61 Roofing levies $41,483.97 Debt collection costs $2,392.00 Costs: Legal fees $15,863.91 Interest $2,792.58 Minus payment received $3,968.21 Total award $79,008.07 $3,968.21 Total payable by Respondent to Applicant

$75,039.86

Reasons:

1. The Tribunal must consider an application from a [NAME] seeking levies and associated costs from the unit owner.

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2. There was no appearance by the unit owner at the hearing today, 1 April 2025. The [NAME] was legally represented at the hearing by [NAME]. [NAME] advised that over the course of pursuing the debt, and with this application to the Tribunal, the unit owner has not contacted the representative.

3. I have no reason to believe that the unit owner has not been notified of the hearing, so I will proceed to consider the application in their absence.

4. The respondent unit owner is the owner of unit 2U, located at [ADDRESS], [ADDRESS], Auckland.

5. Over the course of time levies have been raised for various needs, including the operating levy, and also for roof maintenance. [NAME] has filed copies of the relevant [NAME] minutes, and the invoices from which the levies were raised for payment. The [NAME]’s position is that the unit owner has fallen behind in the payments, so now seeks an order from the Tribunal to recover the debt.

6. I record for completeness that the unit owner has not filed any submission with the Tribunal, and the debt, to that extent, is not disputed. Following my review of the file, I cannot see any evidence of the unit owner disagreeing with the amounts raised.

Does the Unit Owner owe the levies claimed?

7. 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.

8. The [NAME] has determined the levies payable and unit owner's share has been calculated according to their utility interest.

9. In this case the levies claimed are:

a. Operational levies $16,475.61; and

b. Roof replacement $41,483.97

10.The [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. The [NAME] has provided records to prove the amount claimed.

11.The [NAME] has confirmed that the unit owner has paid some of the debt, being a total of $3,968.21. I note the last payment from the unit owner was in May 2021.

12. I am satisfied that the unit owner is liable to pay the levies claimed.

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Is the Unit owner liable for interest?

13. 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.

14.The [NAME] has resolved to charge interest on unpaid levies. The [NAME] has proved the amount of interest owing from the due date to the hearing date, which is $2,792.58.

Is the Unit owner liable for costs?

15.Pursuant to section 124 UTA, and as resolved at meetings of the [NAME], the [NAME] is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to the [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 the [NAME] in recovering the levies, objectively assessed, be paid by a defaulting unit owner. The costs claimed are $2,392.00 in costs for the [NAME] Managers efforts to recover the debt, and legal fees of $15,863.91. Those costs include the Tribunal filing fee of $500.001.

[NAME] 01 April 2025

1 The Tribunal must reimburse the filing fee paid to commence this proceeding see section 176(1) Unit Titles Act 2010 and section 102(4) Residential Tenancies Act 1986.

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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