The Trustees of Haddon Lodge Body Corporate v J. T. Adriaan

The applicant, the Trustees of Haddon Lodge Body Corporate, brought an application under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act) against the respondent, J. T. Adriaan, the owner of Unit 24 in Haddon Lodge, Johannesburg. The body corporate alleged that the respondent had failed to pay monthly levies from March 2023 and that, despite attempts to secure payment, arrears remained outstanding. The applicant relied on its account statement showing an amount of R24 001,94 outstanding as at 1 November 2023, inclusive of interest, and sought payment of that amount together with legal costs. The matter proceeded on the papers after a certificate of non-resolution was issued. The respondent, although invited to file submissions by 8 November 2023, did not respond and gave no explanation for that failure.

• Whether the CSOS adjudicator had jurisdiction under section 39(1)(e) of the CSOS Act to order payment of arrear levies.
• Whether the respondent, as owner of a sectional title unit, was liable to the body corporate for outstanding levy contributions and interest.
• Whether the applicant had established on a balance of probabilities that the amount claimed was due and payable.
• Whether legal costs, administration costs and debtor's costs could be awarded or recovered in the absence of agreement, taxation, or a court/adjudicative order.

The application was upheld. The respondent was ordered to pay the applicant R24 001,94, inclusive of interest, in respect of outstanding levies, in 5 equal instalments of R4 800,38 commencing on 1 December 2023 and ending on 1 April 2024. If the respondent failed to make payments, the full amount would become immediately due and payable. No order was made as to costs, and the claims for administration, debtor's and legal costs were not granted.

A body corporate may obtain relief under section 39(1)(e) of the CSOS Act for payment of arrear levy contributions where it proves, on a balance of probabilities, that the respondent is an owner in the scheme and that levies are due and unpaid. Liability for levies is an incident of ownership in a sectional title scheme. However, legal costs associated with collection are not recoverable from the owner unless such costs have been agreed by the member, taxed, or authorised by a judgment or order; absent that, only the proven levy amount and permissible interest may be ordered.

The adjudicator made general observations about the assessment of evidence on a balance of probabilities, the contractual nature of scheme governance rules, and the statutory framework governing body corporate functions and levy collection. There is also an apparent inconsistency in the reasons where the adjudicator referred to an amount of R25 389,34, despite the operative order granting only R24 001,94; the binding order, however, is the latter amount.

This adjudication affirms, within the CSOS dispute-resolution framework, the principle that a unit owner's liability for levies is inherent in ownership in a sectional title scheme and may be enforced through a CSOS payment order under section 39(1)(e). It is also significant for confirming that while arrear levies and interest may be recovered, legal costs are not automatically recoverable by a body corporate unless they have been agreed, taxed, or authorised by an appropriate order. The decision reflects the interaction between the CSOS Act, sectional title governance, and prescribed management rules in levy enforcement disputes.