Lot ledger disputes can occur between lot owners and Committees. This can be a minefield particularly when penalties and discounts are in play. BCCM adjudicators have identified that they are unable to act in debt disputes (refer Section 229A(3)).
This BCCM adjudication sets out the situation very clearly –
If Ms Naismith does now pay all amounts claimed by the body corporate then Ms Naismith would regain her voting rights, stop losing 20% discounts, stop accruing 30% interest, and stop accruing recovery costs. Also, with no ongoing debt dispute, an adjudicator would then appear to have jurisdiction to consider Ms Naismith’s substantive claim. That is, the adjudicator could consider whether the decision by the committee on 20 May 2013 to refuse to waive the penalties and costs accrued against Ms Naismith was unreasonable and should be overturned. However, there is no jurisdiction to consider this claim while any of the claimed amounts remain unpaid.
My advice to lot owners with lot ledger issues is to pay all outstanding amounts owing. Then, write to the Committee and request clarification, relief etc. in regard to the disputed amounts with your reasoning to justify your request. If you remain unhappy with the Committee response, then you can consider seeking a dispute resolution through the BCCM process.
My advice to Committees is to be reasonable and consistent in your decisions. Discounts and penalties are carrots and sticks provided by the legislation to help ensure that the Body Corporate collects funds on-time so that the Body Corporate can meet all financial obligations. The reasons for lot owner non-payment or late payment can be many and varied. There may be corner cases where it is appropriate for discounts and penalties to be waived.
