The Owners - Units Plan 371 v Nabua & Anor (Civil Dispute)

[2018] ACAT 29

ACT CIVIL & ADMINISTRATIVE TRIBUNAL

THE OWNERS - UNITS PLAN 371 v NABUA & ANOR (Civil Dispute) [2018] ACAT 29

XD 637/2016

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 or third arrears letters to be double the price of the first arrears letter – whether the amount for a fixed charge to commence legal action is reasonable

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 637/2016

BETWEEN:

THE OWNERS - UNITS PLAN 371

Applicant

AND:

HECTOR MARK NABUA

First Respondent

THERESE RESTON TAMPIPI

Second 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 $1365.40

………………………………..

Senior Member H Robinson

REASONS FOR DECISION

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

2. The respondent was ordered to pay the applicant to sum of $1,680.50 for unpaid levies, interest and the application fee. 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
Default judgment application	$165.00
Judgment assessment hearing	$220.00
Phone/email demand	$55.00
Register ACAT judgment	$66.00
Serve judgment order on debtor	$66.00
Total	$1,670.40

1. It is acknowledged that paralegal staff, amongst others, undertook significant work for which no payment was sought.

2. Taking into account the guiding principles outlined in Black, 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.

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

4. This matter raises the same issues in relation to the escalating cost of arrears letters and the $500.00 fee for the commencement of legal action as The Owners – Units Plan No 1565 v Ruff [2018] ACAT 31. The Tribunal adopts the same reasoning in this case. The Tribunal allows $250.00 for the management fee and $55.00 for each of the arrears letters.

5. 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.

6. The Tribunal therefore allows the sum of $1,365.40 for expenses under section 31 of the Unit Titles (Management) Act 2011 in this matter.

………………………………..

Senior Member H Robinson