The Owners Unit Plan No 3964 v Wang (Civil Dispute)
[2018] ACAT 32
•20 March 2018
ACT CIVIL & ADMINISTRATIVE TRIBUNAL
THE OWNERS – UNIT PLAN NO 3964 v WANG (Civil Dispute) [2018] ACAT 32
XD 975/2016
Catchwords: CIVIL DISPUTE – unpaid levies – owners corporation incurred expenses when taking action to recover unpaid levies – whether it was reasonable for the relevant owners corporation to incur the expenses claimed – whether it is reasonable for the second arrears letter to be double the price of the first arrears letter – whether each component of the expenses sought is reasonable
Legislation cited: Unit Titles (Management) Act 2011 s 31
Cases cited:The Owners – Unit Plan No 3182 v Black and Anor [2018] ACAT 6
The Owners – Units Plan No 1565 v Ruff [2018] ACAT 31
Tribunal: Senior Member H Robinson
Date of Orders: 20 March 2018
Date of Reasons for Decision: 20 March 2018
AUSTRALIAN CAPITAL TERRITORY )
CIVIL & ADMINISTRATIVE TRIBUNAL ) XD 975/2016
BETWEEN:
THE OWNERS – UNIT PLAN NO 3964
Applicant
AND:
CHEN WANG
Respondent
TRIBUNAL: Senior Member H Robinson
DATE:20 March 2018
ORDER
The Tribunal orders that:
Within 28 days the respondent pay the applicant the amount of $955.05.
………………………………..
Senior Member H Robinson
REASONS FOR DECISION
These reasons are supplementary to the Tribunal’s reasons in The Owners – Unit Plan No 3182 v Black and Anor [2018] ACAT 6 (Black).
The claim was for $2,156.80. The respondent was ordered to pay the residue of the outstanding amount for unpaid levies, interest and the application fee in the amount of $156.81. Additionally, the applicant claimed the following expenses:
Arrears letter 2nd reminder $55.00 Arrears letter 3rd reminder $110.00 Commencement of legal action $500.00 Demand letter $37.40 Issue debt application $396.00 Phone/email demand $55.00 Default judgment application $165.00 Judgment assessment hearing $220.00 Phone/email demand $33.00 Less payment made by debtor -$311.35 Total $1260.05
Taking into account the guiding principles outlined earlier in this decision, the Tribunal accepts that it was reasonable for the corporation to:
(a)engage an agent to take steps to recover the debt;
(b)issue proceedings; and
(c)recover the enforcement costs of previous proceedings against the same debtor in this proceeding.
The next question is whether the amount of the expenses claimed are reasonable.
This matter raises the same issues as those considered in The Owners Units Plan No 1565 v Ruff [2018] ACAT 31 in relation to the escalating costs of subsequent arrears letters, and the $500.00 fee for the commencement of legal action. For the reasons set out in that decision, the second arrears letter will be allowed at $55.00 and the commencement of legal action fee reduced to $250.00.
The legal costs claimed for issuing the debt application, default judgment, assessment hearing, registering and serving the judgment are allowed in full as the Tribunal considers these costs to be reasonable for the reasons set out in Black.
The Tribunal therefore allows the sum of $955.05 for expenses under section 31 of the Unit Titles (Management) Act 2011 in this matter.
………………………………..
Senior Member H Robinson
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