Trustees of Oaklane Mews Body Corporate v Letlhage Pule Wayne

The applicant, the Trustees of Oaklane Mews Body Corporate, is the duly constituted body corporate of a sectional title scheme in Brakpan North, Gauteng. The respondent, Mr Pule Wayne Letlhage, is the owner of Unit 86 in the scheme. The body corporate brought an application to the Community Schemes Ombud Service (CSOS) under section 38 of the Community Schemes Ombud Service Act 9 of 2011, seeking relief under section 39(1)(e) for payment of arrear contributions and also seeking costs. The application was properly authorised by trustee resolution. Conciliation did not resolve the dispute and a certificate of non-resolution was issued, after which the matter was referred to adjudication on the papers. The applicant alleged that as at 30 September 2023 the respondent owed arrear levies/contributions in the amount of R25 069.09. A section 43 notice was issued to the respondent, but no response or opposing submissions were filed. The adjudicator therefore determined the matter on the undisputed papers.

• Whether the applicant body corporate had made out a proper case under section 39(1)(e) of the CSOS Act for an order compelling the respondent to pay arrear contributions.
• Whether the applicant had complied with the procedural requirements for bringing a CSOS application, including authority and exhaustion of internal remedies.
• Whether the applicant was entitled to a costs order in the CSOS adjudication.

The application succeeded in part. The applicant's claim for payment under section 39(1)(e) was granted, but its prayer for costs was dismissed. The respondent was ordered to pay the applicant R25 069.09 within four months of the award. The first payment of R6 267.27 was due on 1 January 2024, followed by equal monthly instalments on the first day of each subsequent month. If the respondent defaulted on any payment, the full outstanding amount of R25 069.09 would become payable within 30 days of the first default. No order as to costs was made.

Where a body corporate properly authorised by trustee resolution brings a CSOS application under section 39(1)(e) of the CSOS Act, and establishes on a balance of probabilities that a unit owner owes arrear contributions, CSOS may order payment of those arrears. In the absence of opposition, the adjudicator may determine the matter on the undisputed papers. A claim for costs in CSOS proceedings will fail where no proper basis for such an award is established and the request is misconceived in the circumstances.

The adjudicator observed that the applicant's conduct rules were silent on levies and suggested that the body corporate should have its conduct rules assessed and endorsed by CSOS in terms of section 10(2) of the STSMA. The adjudicator also made broader comments on South African costs jurisprudence, noting that costs are generally discretionary and influenced by litigants' conduct, and referred to CSOS circular guidance that rules restricting voting rights or access for non-payment of levies will not be approved.

The adjudication illustrates the CSOS's role as the primary specialist forum for the resolution of levy and contribution disputes in community schemes. It confirms that a body corporate may obtain relief under section 39(1)(e) of the CSOS Act for arrear contributions on an unopposed paper-based record, provided procedural requirements are met. The decision also reflects the approach that costs will not lightly be awarded in CSOS proceedings and that owners in sectional title schemes remain contractually and statutorily bound to meet their financial obligations to the body corporate.