‘THE SHORES’ BODY CORPORATE No. 355492 v CARVELL [2022] NZHC 2310

'THE SHORES' BODY CORPORATE No. 355492 v CARVELL [2022] NZHC 2310 [9 September 2022]IN THE HIGH COURT OF NEW ZEALANDINVERCARGILL REGISTRYI TE KŌTI MATUA O AOTEAROAWAIHŌPAI ROHECIV-2022-425-35[2022] NZHC 2310BETWEEN 'THE SHORES' BODY CORPORATENo. 355492PlaintiffAND JEFFREY CARVELLDefendantHearing: (On the papers)Counsel: G D Johnston and A D G Hitchcock for PlaintiffJudgment: 9 September 2022JUDGMENT OF ASSOCIATE JUDGE LESTER(Costs)[1] The defendant, Mr Carvell, owns a unit in 'The Shores" apartment complex inQueenstown. The apartment complex has had weathertightness issues requiring theplaintiff, Body Corporate No. 355492 (Body Corporate), to address repairs tothe building. Those repairs have created the need for the plaintiff to levy contributionsfor remedial work and litigation arising from what the Body Corporate says weresubstandard repairs and/or breaches of duty by the local authority. Those levies werein addition to the standard levies which any Body Corporate must impose from timeto time.[2] The total of the standard levies, remediation and litigation levies, here issubstantial. As at 21 June 2022, when the statement of claim was filed, the levelsunpaid by Mr Carvell totalled $619,234.54. Demand had been made on the defendantfor that amount but he had not paid.Plaintiff seeks summary judgment[3] The Body Corporate has applied for summary judgment in relation to theoutstanding levies, interest and costs.[4] Mr Carvell lives in Singapore where he was personally served with theseproceedings. However, it was discovered a page from the notice of proceeding wasnot included in the documents personally served on Mr Carvell.[5] On 16 August 2022, I directed that, given Mr Carvell had been personallyserved with the proceedings and he had recently updated his email address with theBody Corporate, a full copy of the notice of proceeding was to be served on Mr Carvellalong with a copy of the direction permitting service of the full notice of proceedingby email.[6] The application for summary judgment was called in the Invercargill HighCourt on 25 August 2022. Mr Carvell had taken no steps which remains the case asat the date of this Judgment. I entered judgment for liability on that date as it was clearon a review of the documents that the levies had been properly raised, notice of thelevies had been sent to Mr Carvell and demand made upon him.[7] However, I had a concern about the claim for interest for which judgment wassought. I was told that interest had been claimed on a compounding basis. It was myview that under s 128 of the Unit Titles Act 2010, only simple interest could beclaimed, not compounding interest. The proceeding was adjourned for the BodyCorporate to address that point.[8] It now seems interest was in fact calculated on a simple basis.[9] The amount for which judgment was sought in the statement of claim was$619,234.54 which included simple interest as at 21 June 2022.[10] The Body Corporate has revised its approach to interest from 21 June 2022,seeking judgment only in respect of the unpaid levies being $529,426.60. Interest isclaimed on that amount from 21 June 2021 to 29 August 2022 (the date the Court wasadvised of the correct basis for the interest calculation). The further interest claimedto 29 August 2022 is $10,008.45; making a total judgment of $629,242.99($619,234.54 as at 21 June 2021 plus $10,008.45).[11] The Body Corporate is entitled to costs on a 2B basis being $9,560 togetherwith disbursements, including the service fee, a further $4,011.65, making the totalvalue of the judgment $642,814.64._______________________________Associate Judge LesterSolicitors:AWS Legal, Invercargill (for Plaintiff)Copy to counsel:G D Johnston, Barrister, ChristchurchMr J Carvell