The Owners Unit Plan No 3964 v Wang (Civil Dispute)

[2018] ACAT 32

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:

1. Within 28 days the respondent pay the applicant the amount of $955.05.

………………………………..

Senior Member H Robinson

REASONS FOR DECISION

1. These reasons are supplementary to the Tribunal’s reasons in The Owners – Unit Plan No 3182 v Black and Anor [2018] ACAT 6 (Black).

2. 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

1. 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.

2. The next question is whether the amount of the expenses claimed are reasonable.

3. 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.

4. 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.

5. 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