Owners
of five apartments at Paihia’s Bridgewater Bay allegedly owing $926,700 for
unpaid body corporate levies failed to get a High Court debt collecting action
thrown out. They dispute the levies and
argue any hearing should be in the Tenancy Tribunal.
Bridgewater Bay Apartments is a leaky
building. Owners of the 22 apartments
are not unanimous in agreeing remedial action.
A minority disagree with proposals to raise a levy for repairs costed at
over three million dollars. Five owners
went on strike, refusing to pay levies imposed.
Some have taken court action. The
body corporate raised the ante by
suing those on strike in the High Court for unpaid levies and accrued interest calculated
from July 2014 totalling some $926,700.
Claims against individual owners range from $213,800 to $107,900. The disaffected minority said the High Court
has no jurisdiction to hear this dispute.
The Unit Titles Act sets out three layers
of dispute resolution: claims up to $50,000 are heard in the Tenancy Tribunal;
between $50,000 and up to $200,000 in the District Court; $200,000 and above in the High Court.
Those on strike argue unpaid levies are
an accumulation of separate levies all (with one exception) under $50,000. Any dispute about these levies should be heard
in the Tenancy Tribunal where hearings are cheaper and more informal.
Associate judge Bell ruled the High Court
has jurisdiction. It has inherent
authority to hear any dispute unfettered by jurisdictional limits imposed on
lower courts and tribunals. Attempting
to split the dispute into small discrete claims is obviously inefficient and
will prolong the dispute, he said.
Whether the disaffected minority is
liable to pay any disputed levies is yet to be decided.
re
Bridgewater Bay Apartments – High Court (14.10.16)
16.146