Can the amount claimed in tribunal or court proceedings for levy recovery be increased to include additional levies that accrue before the ruling?
Once tribunal proceedings for a levy debt begin, can the amount we’re claiming be increased to include levies that continue to accrue during the lengthy period before a ruling? Otherwise, it seems the body corporate must begin new recovery action for the next round of unpaid levies, which results in ongoing legal fees that quickly erode any recovered funds. Is this correct? Is there a more effective approach to managing these situations without having to repeatedly start new proceedings?
Any levies that do not form part of the original claim will not be automatically added after an application has been made or court proceedings have commenced.
This situation often arises when there is ongoing or recurring debt. Levies that become payable after an application has been made or proceedings have been commenced cannot be added to the tribunal or court proceedings. This applies consistently across all states.
Unfortunately, if it takes some time, for example a year, to recover those levies, the owners corporation will need to commence a new recovery process for any additional amounts that have become due since the commencement of proceedings. Whilst the need to make a new application or commence new proceedings is frustrating, a new action may be commenced before the existing proceedings have been paid. If the cycle is ongoing, the owners corporation may need to seek advice about the options available to it.
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With 40 years’ experience in the industry, Petra specialises in all aspects of debt recovery work and litigation. Her attention to detail, extensive knowledge and responsiveness has resulted in her managing the levy recovery work for the same clients over decades. One of her most notable achievements was handling, with Counsel, on behalf of the client owners corporation, the Court of Appeal precedent setting case of Coshott v The Owners of Strata Plan No 48892 [2006] NSWSC 308.
As General Manager of Bugden Allen’s LevyCollect Team, Petra heads up a national levy recovery service for Owners Corporations. She is experienced in multiple areas of law, including:
- collection of levies for owners corporations, community and neighbourhood associations, and company title schemes;
- litigation, personal and corporate insolvency;
- general debt recovery matters; and
- by-law consolidation and registration.
Petra’s clear and concise advice and guidance to clients in these areas is highly regarded in the industry.
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