Tao v Strata Title Administration Ltd

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IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV-2015-404-817 [2016] NZHC 1821

BETWEEN

AN LI TAO

Plaintiff

AND

STRATA TITLE ADMINISTRATION LTD

First Defendant

AND

JIGAR PANDYA Second Defendant

UNDER  Section 141 Unit Titles Act 2010

BETWEEN  AN LI TAO Applicant

AND  BODY CORPORATE 198693

Respondent

On the papers

Judgment:

8 August 2016

JUDGMENT OF THOMAS J [COSTS]

This judgment was delivered by me on 8 August 2016 at 11.30 am pursuant to Rule 11.5 of the High Court Rules.

Registrar/Deputy Registrar

Date:………………………….

TAO v STRATA TITLE ADMINISTRATION LTD & ORS [2016] NZHC 1821 [8 August 2016]

Introduction

[1]      Ms An Li Tao is the registered proprietor of one of 36 units in a unit title development  at  8 Margan Avenue,  New  Lynn, Auckland.   She filed proceedings making  various  claims  against  the  defendants,  Strata  Title  Administration  Ltd (Strata), the body corporate secretary, and Jigar Pandya, the body corporate chairperson. The defendants’ application for summary judgment against her, on the basis that none of the claims could succeed, was granted by me on 27 April 2006. By the same decision,  I dismissed Ms Tao’s  application  for the  appointment  of an administrator under s 141 of the Unit Titles Act 2010, (the Act) which had been

opposed by the Body Corporate.1

[2]      The defendants/respondent, who I will jointly refer to as “the applicants”,

now seek costs against her, either indemnity costs or an increase on scale costs.

[3]      Ms Tao disagrees with the calculations of scale costs, and opposes an award of indemnity or increased costs. She seeks reduced costs or that costs lie where they fall, on the basis that she put effort into trying to resolve the disputes, was representing legitimate complaints, and is impecunious in any event.

Submissions

[4]      The applicants say that all the costs to date have been met by Strata Title, but these will be passed on to the Body Corporate, meaning any award less than indemnity costs will be visited on the Body Corporate. They claim indemnity costs of $65,164.75. By their calculations, scale costs are $50,621.00, so a 25 per cent uplift on an increased costs basis would amount to recovery of $63,276.25.

[5]      The applicants say this is justified on the basis of the indemnity and increased costs  rules.  Ms  Tao’s  complaints  could  have  been  dealt  with  within  the  body corporate structure process, and her failure to pay her fees was a deliberate choice

which halted those processes. The applicants say that the proceedings were brought

1      Tao v Strata Title Administration Ltd [2016] NZHC 814.

for  the  ulterior  motive  of  obtaining  what  she  could  not  achieve  through  the

Extraordinary General Meeting processes because of her refusal to pay levies.

[6]      The  applicants  allege  that  Ms Tao’s  submissions  were  incomprehensible, lacked focus and were highly repetitive, and “defied any logical or commercial position when the easy way through her complaints was to pay the levies and then vote toward what she sought.”   They maintain  she failed to  adopt the rules of…

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Details
Case
[2016] NZHC 1821
Decision Date

CaseChat Overview and Summary

The case of Tao v Strata Title Administration Ltd involves Ms An Li Tao, the registered proprietor of a unit in a unit title development in New Lynn, Auckland. She filed various claims against Strata Title Administration Ltd, the body corporate secretary, and Jigar Pandya, the body corporate chairperson. The defendants applied for summary judgment against Ms Tao, which was granted on 27 April 2006, and she was also unsuccessful in her application for the appointment of an administrator under section 141 of the Unit Titles Act 2010. The defendants now seek costs against Ms Tao, either indemnity costs or an increase on scale costs. Ms Tao disagrees with the calculations of scale costs and opposes an award of indemnity or increased costs.

The court had to determine whether the defendants were entitled to indemnity or increased costs, and if so, whether the claim was sufficiently particularised and whether Ms Tao’s behaviour warranted such costs. The court found that Ms Tao's behaviour, while time-consuming and difficult for all parties involved, was not of the high standard required for awarding indemnity costs. However, the court found that Ms Tao's conduct did warrant increased costs, as she ran many arguments which lacked merit, pursued unnecessary steps, and failed to comply with court directions.

The court awarded increased costs with an uplift of 25 per cent, as it was considered appropriate given the circumstances. The court also addressed Ms Tao's complaints about the costs claimed by the defendants, and made adjustments to the scale costs calculation accordingly. The total costs awarded were $60,210, which included a 25 per cent uplift on the adjusted scale costs. The court emphasised that costs should be awarded at a meaningful level, even against an impecunious party, when the party has advanced a case which is poorly pleaded or lacking in merit.

In conclusion, the court found that the defendants were entitled to increased costs, with a 25 per cent uplift on the adjusted scale costs. The court took into consideration the nature of Ms Tao's conduct during the proceedings, as well as the adjustments made to the scale costs calculation based on Ms Tao's objections. The court also highlighted that any deficit in the defendants' actual costs would have to be met by the Body Corporate members, of which Ms Tao is a part.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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