Relief sought by Plaintiff
41At the time when the Plaintiff filed the Further Amended Statement of Claim, the Plaintiff sought the following relief: -
(a) Claim component in the amount of $49,776.65 comprised of: -
(i) Unpaid levy contributions (strata levies) up to 1 June 2010 in theamount of $36,014.73;
(ii) Costs and expenses incurred by the Plaintiff up to 5 April 2010 in attempting to recover unpaid contributions due and owing by the Defendant to the Plaintiff pursuant to s.80 of the Strata Schemes Management Act 1996 (NSW) in the amount of $13,761.92.
(b) Interest up to 5 August 2010 in the amount of $6,693.56 pursuant to s.79(2) of the Strata Schemes Management Act 1996 (NSW).
(c) Court filing fees, service fees and solicitors fees in the amount of $1,072.40 pursuant to Part 4 of Schedule 1 of the Civil ProcedureRegulation 2005 (NSW).
42The recovery costs and expenses claimed in the further Amended Statement of Claim have been incurred by the Plaintiff entirely in relation to these proceedings. There is no suggestion that the Plaintiff is seeking to recover any costs incurred in relation to previous proceedings.
43The Defendant has not filed or served an Amended Defence to the Further Amended Statement of Claim, nor has the Defendant made any payments whatsoever towards the amount claimed by the Plaintiff since the proceedings were commenced.
44The Plaintiff's solicitor, in a process which, for the reasons set out below, I deem entirely proper, sought to update the amounts outstanding to the Plaintiff for unpaid levy contributions (strata levies), costs and expenses, interest, court filing fees, service fees and solicitor's fees. As at the date of the hearing, the Plaintiff's claim was as follows: -
(a) Claim component in the amount of $59,513.25 comprised of : -
(i) Unpaid levy contributions (strata levies) up to 1 June 2010 in the amount of $36,014.73;
(ii) Costs and expenses incurred by the Plaintiff up to 23 November 2010 in attempting to recover unpaid contributions due and owing by the Defendant to the Plaintiff pursuant to s.80 of the Strata Schemes Management Act 1996 (NSW) in the amount of $23,498.52.
(b) Interest up to 2 February 2011 in the amount of $8,479.50 pursuant to s.79(2) of the Strata Schemes Management Act 1996 (NSW).
(c) Court filing fees, service fees and solicitor's fees in the sum of $1,072.40 pursuant to Part 4 of Schedule 1 of the Civil Procedure Regulation 2005 (NSW).
(d) Recovery expenses incurred pursuant to s.80 of the Strata Schemes Management Act 1996 (NSW) from 24 November 2010 up to and including 2 February 2011, as agreed or assessed.
45The relevant provisions of the Strata Schemes Management Act 1996 (NSW) are as follows: -
" 76 Owners corporation to set levy for contributions to administrative and sinking funds
(1) The owners corporation must determine the amounts to be levied as a contribution to the administrative fund and the sinking fund to raise the amounts est i mated as needing to be credited to those funds.
(2) That determination must be made at the same meeting at which those estimated amounts are determined.
(3) The owners corporation must levy on each person liable for it such a contribution.
(4) If the owners corporation is subsequently faced with other expenses it cannot at once meet from either fund, it must levy on each owner a contribution to the administrative fund, determined at a general meeting of the owners corporation, in order to meet the expenses.
(5) A contribution is, if an owners corporation so determines, payable by such regular periodic instalments as are specified in the determination setting the amount of the contribution.
78 Manner of levying contributions
(1) An owners corporation levies a contribution required to be paid tothe administrative fund or sinking fund by an owner of a lot byserving on the owner a written notice of the contribution payable.
(2) Contributions levied by an owners corporation must be levied inrespect of each lot and are payable (subject to this section and section 77) by the owners in shares proportional to the unit entitlements of their respective lots.
(3) If, at the time a person becomes owner of a lot, another person isliable in respect of the lot to pay a contribution, the owner is jointly and severally liable with the other person for the payment of thecontribution and interest on the contribution.
(4) A mortgagee or covenant chargee in possession of a lot (whether in person or not) is jointly and severally liable with the owner of thelot:
(a) for any regular periodic contributions to the administrative fund or sinking fund together with any interest on thosecontributions, and
(b) for any other contribution together with interest on thatcontribution if the mortgagee or covenant chargee has been given written notice of the levy of the contribution.
(5) Subsection (4) does not affect the liability of an owner of a lot forany contribution levied under this section.
(6) Regular periodic contributions to the administrative fund andsinking fund of an owners corporation are taken to have been dulylevied on an owner of a lot even though notice levying thecontributions was not served on the owner.
79 Interest and discounts on contributions
(1) Any contribution levied by an owners corporation becomes dueand payable to the owners corporation in accordance with thedecision of the owners corporation to make the levy.
(2) A contribution, if not paid at the end of one month after it becomesdue and payable, bears until paid simple interest at an annual rateof 10 per cent or, if the regulations provide for another rate, thatother rate.
(3) However, an owners corporation may by special resolutiondetermine (either generally or in a particular case) that acontribution is to bear no interest.
(4) An owners corporation may, by special resolution, determine(either generally or in a particular case) that a person may pay 10per cent less of a contribution levied if the person pays thecontribution before the date on which it becomes due and payable.
80 How does an owners corporation recover unpaid contributionsand interest?
(1) An owners corporation may recover as a debt a contribution notpaid at the end of one month after it becomes due and payable, together with any interest payable and the expenses of the ownerscorporation incurred in recovering those amounts.
(2) Interest paid or recovered forms part of the fund to which therelevant contribution belongs."
46There is evidence that the Defendant is the owner of Lots 21 and 22 in Strata Plan 68523. In accordance with ss.76 and 78(2) of the Strata Schemes Management Act 1996 (NSW) , the evidence discloses that contributions were levied by the Plaintiff to be paid to the administrative fund and/or the sinking fund in respect of the Defendant's lots and are payable in shares proportionate to the unit entitlements for each lot. The contributions levied by the Plaintiff were resolved at Annual General Meetings and Extraordinary General Meetings held on 13 November 2006, 19 November 2007, 10 November 2008, 29 May 2009 and 9 November 2009, respectively. As a result of the Defendant's failure to make payment of the strata levies referable to the lots owned by him, interest at the rate of 10% is now due and payable on all outstanding levies pursuant to s.79(2) of the Strata Schemes Management Act 1996 (NSW) .
47The Plaintiff's solicitor drew my attention to a number of decisions of the Supreme Court of NSW and the Court of Appeal which considered "expenses" and s.80 of the Strata Schemes Management Act 1996 (NSW) , in particular, the decision of Cooper AJ in Coshott v Owners of Strata Plan 48892 [2006] NSWSC 308 ("the First Coshott Case") and Adams J in Coshott v Owners SP No. 48892 [2008] NSWSC 854 ("the Second Coshott Case") in which their Honours at [76] and [4] respectively, held that an Owners' Corporation can recover all legal costs and disbursements and all other expenses it incurs in the debt recovery process including, for example, mercantile and strata managing agents' fees and that the word "expenses" is not limited in any way. Those decisions indicate the clear intent of s.80 of the Strata Schemes Management Act 1996 (NSW) that an Owners' Corporation would not be left out of pocket because a lot owner has failed to pay contributions duly levied and that expenses can be recovered in actions separate to the principal action, if necessary, associated with the recovery of unpaid levy arrears. (First Coshott Case at [81] - [86]; and Second Coshott Case at [6]).
48In Owners of Strata Plan 36131 v Dimitriou [2009] NSWCA 27, the Court of Appeal agreed that the legal expenses incurred by an Owners' Corporation are recoverable but that such recovery is limited to such costs and disbursements that are reasonably incurred and reasonable in amount. While their Honours Hodgson JA, Basten JA and Handley AJA respectively arrived at the same conclusion regarding recoverability, their Honours did not concur with one another in relation to the method by which expenses incurred pursuant to s.80 of the Strata Schemes Management Act 1996 (NSW) were calculated. To the extent that the Defence remains silent on the issue of reasonableness of expenses incurred, or otherwise, it is not necessary for this Court to engage in a discussion of the s.80 expenses, suffice it to say that the Plaintiff provided to the Defendant fully itemised bills which, on their face, appear reasonable in amount and in relation to expenses reasonably incurred.
49It seems to me that the overall intention of the authorities to which I have referred is that all reasonable costs ought to be recoverable. In relation to the recovery of costs incurred in enforcing security where mortgagors are in default, Basten JA in Dimitriou held at [65] that: -
"the entitlement to recover all costs reasonably and properly incurred in protecting or enforcing a security has long been a principle of general law, not dependent upon the existence of an express contractual term: see In re Shanahan (1941) 58 WN (NSW) 132 at 134 (Street J)."
50The Defendant has failed to provide any evidence which disputes the claim by the Plaintiff for unpaid levies, interest and costs. The Defence does not raise any identifiable defence to the Plaintiff's claim but merely particularises that a set-off is claimed as outlined in the Cross-Claim for work allegedly performed by the Defendant to the common property of the strata complex relevant to the proceedings.
51The Defendant has failed to provide any cogent evidence in support of any of the allegations pleaded in the Cross-Claim. The Plaintiff denies that any works were undertaken by the Defendant to the common property, or elsewhere, at the request of the Plaintiff and, similarly, denies that there was ever any oral or written agreement between the Plaintiff and the Defendant of any kind. There is no evidence of a resolution by the Executive Committee whether via an Annual General Meeting or an Extraordinary General Meeting which resolved to authorise the engagement of the Defendant to undertake any of the works alleged to have been carried out by him.
52For the reasons given, I accept the Plaintiff's evidence and reject the Defendant's evidence.
53Rule 29.7 of the Uniform Civil Procedure Rules 2005 (NSW) provides as follows:-
" 29.7Procedure to be followed if party is absent
(1) This rule applies when a trial is called on.
(2) If any party is absent, the court:
(a) may proceed with the trial generally or so far as concernsany claim for relief in the proceedings, or
(b) may adjourn the trial.
(3) If, in relation to a liquidated claim, the plaintiff appears, but adefendant does not appear, the court may, without proceeding to trial, give judgment against that defendant on evidence of:
(a) the amount then due to the plaintiff in respect of the causeof action for which the proceedings were commenced, and
(b) any payments made or credits accrued since thecommencement of the proceedings in reduction of theamount of the plaintiff's claim or costs.
(4) If, in relation to any proceedings, the defendant appears, but theplaintiff does not appear, the court may dismiss the proceedings.
(5) Subrules (3) and (4) do not limit the court's powers under subrule(2)."
54In the circumstances, and for the reasons given: -
(a)The Defence is struck out for want of prosecution.
(b)Judgment is entered for the Plaintiff.
(c)The Cross-Claim is dismissed for want of prosecution.