One of the most frustrating tasks some trustees and managing agents have to tackle, is the situation where the body corporate finds itself in financial difficulty as a direct result of some of its members failing, and/or refusing to pay their contributions (commonly referred to as "levies').
The common law in duplum rule applies to all interest charges, which means that the current interest on debt can never exceed the capital amount of that debt. It is from this place of frustration that trustees and managing agents often take a "desperate times call for desperate measures" approach and unlawfully place certain amounts on the defaulting member's levy statement.
While it is completely understandable that the trustees feel the need to take action to force the defaulting owner to make payment as a matter of urgency, it is important that they act in a lawful and appropriate manner when doing so. Here are some things to remain mindful of in such circumstances:
Should you have any questions regarding whether or not you may add specific amounts to a defaulting member's levy account or wish to discuss whether certain items have been illegally added to your account, email Paddocks for a no-obligation quotation.