Cecelia Van Aswegen v Mawer Delport and Trewton Court Body Corporate

The applicant, Cecelia Van Aswegen, is the registered owner of unit 106 in Trewton Court, a sectional title scheme. She fell into arrears with her levies and did not dispute that she owed the body corporate money. Her complaint was directed at the interest added to her arrear levy account. She contended that she had repeatedly asked the managing agent not to charge interest because she was unemployed, was struggling to find work due to her age, and intended to pay once she obtained employment. She also stated that she had put her flat up for sale because she could not keep up with her bond and levy obligations. The respondents relied on the body corporate's authority to charge interest on overdue levies, including a trustees' resolution and previous CSOS proceedings concerning the applicant's arrear levies.

• Whether the applicant had established a lawful or reasonable basis for an order directing the removal of interest charged on arrear levies.
• Whether the body corporate was entitled under the applicable statutory and management rule framework to charge interest on overdue levy amounts.
• Whether the respondents had acted outside their powers, breached fiduciary duties, or acted negligently in imposing interest on the applicant's arrear levy account.

The application was dismissed. The adjudicator refused the relief seeking removal of all interest from the applicant's levy statement relating to arrear levies. No order as to costs was made.

A body corporate in a sectional title scheme may lawfully charge interest on overdue levy amounts where such interest is authorised by a written trustees' resolution in terms of Prescribed Management Rule 21(3)(c), subject to the statutory limits. An owner seeking removal of such interest must establish a legal basis for that relief; personal hardship, without more, does not displace the body corporate's lawful power to levy and recover interest on arrears.

The adjudicator made general observations about evidentiary assessment, including that relevant evidence must be evaluated on a balance of probabilities with reference to credibility and probabilities. The order also notes the parties' right of appeal to the High Court under section 57 of the CSOS Act on a question of law only. No substantial further obiter dicta appear from the text provided.

The matter illustrates the CSOS approach to disputes over arrear levies and interest in sectional title schemes. It confirms that, where a body corporate has properly authorised interest through a written trustees' resolution and acts within Prescribed Management Rule 21(3)(c), an owner in arrears cannot obtain remission of interest merely on the basis of personal financial hardship. The decision reinforces the statutory powers of body corporates to recover levies and related interest and the importance of trustees' resolutions in founding such claims.