Johanna Petronella Mitchell obo Wilkruinpark Body Corporate v MB Phakedi

Johanna Petronella Mitchell, acting on behalf of Wilkruinpark Body Corporate through its managing agent and under trustee authority, brought a dispute-resolution application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against MB Phakedi, the registered owner of a unit in the sectional title scheme. The body corporate alleged that the respondent had failed to pay levy contributions owing to the scheme. The arrears were stated to be R5 705.22. A contribution statement/breakdown was submitted in support of the claim. The matter first went through the CSOS process, and after conciliation failed, a certificate of non-resolution dated 27 September 2023 was issued and the matter was referred for adjudication. The respondent did not file a response despite notice under section 43 of the CSOS Act and a further opportunity to do so.

• Whether the CSOS had jurisdiction under the CSOS Act to adjudicate a dispute concerning unpaid levy contributions in a sectional title scheme.
• Whether Wilkruinpark Body Corporate, through its authorised representative, had established on a balance of probabilities that the respondent owed arrear levy contributions of R5 705.22.
• Whether an order should be granted under section 39(1)(e) of the CSOS Act compelling payment of the outstanding contributions.
• Whether any costs order should be made in the adjudication.

The application was granted. The respondent was ordered to pay arrear levy contributions of R5 705.22 in full on or before 31 March 2024. No order as to costs was made.

A body corporate in a sectional title scheme is entitled, under section 39(1)(e) of the CSOS Act read with its powers and obligations under the Sectional Titles Schemes Management Act 8 of 2011, to obtain an adjudication order compelling a unit owner to pay outstanding levy contributions where the body corporate provides sufficient proof of the indebtedness on a balance of probabilities. The absence of a response from the owner, coupled with documentary proof of the arrears, justifies granting the payment order.

The adjudicator observed that levies are the 'lifeblood' of shared living schemes and that non-payment can seriously destabilise a scheme by undermining maintenance, insurance, security, and the collective interests of owners. The adjudicator also made general comments that costs orders are not usually granted in section 54 adjudications unless circumstances such as frivolous or vexatious conduct under section 53 are present.

The decision reinforces the CSOS's role as a statutory forum for enforcing levy obligations in community schemes. It confirms that body corporates may recover unpaid levies through section 39(1)(e) of the CSOS Act on proof of the debt and that owners cannot simply withhold payment. The order underscores the central importance of levies to the functioning and financial viability of sectional title schemes.