Tenant Awarded Damages for Landlord's Failure to Lodge Bond

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[2025] NZTT 5221191

TENANCY TRIBUNAL AT CHRISTCHURCH | TE TARAIPIUNARA RETIHANGA KI ŌTAUTAHI

APPLICANT: [redacted]

Tenant

RESPONDENT: [redacted]

Landlord

TENANCY ADDRESS: [ADDRESS], [POSTCODE]

ORDER

1. [COMPANY] must pay [NAME] $627.00 immediately calculated as shown in the table below.

2. To the extent that this award in not paid, [NAME] may deduct it from rent payable.

3. The tenant’s other claims are dismissed.

Description Landlord Tenant Exemplary damages $600.00 Filing fee reimbursement $27.00 Total award $627.00

Reasons:

1. The hearing was conducted by telephone. The tenant attended and [NAME] attended for the landlord.

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Background

2. [NAME] attended the hearing of the tenant’s previous application which resulted in an order on 27 March 2025 declaring that this was a tenancy subject to the Residential Tenancies Act 1986 (the Act) and that the landlord’s termination notice was invalid.

3. [NAME] confirmed that he had authority from those in control of the landlord company. The problem was that he did not have good knowledge of the situation that has initiated the tenant’s application. As it has turned out, for reasons that are given below, that has not been critical. But if the tenant has the need to make another application to the Tribunal concerning this tenancy, it will expect someone in a senior position in the company, who has comprehensive knowledge of the situation, to represent the landlord. If language is a barrier, the landlord can request an interpreter and one will be provided at no cost to the landlord.

4. The tenant has a tiny home and a container which sit on a part of the landlord’s campground. Such a situation would normally be excluded from the Act, but in this case the Tribunal found that the parties agreed that the Act would apply.

5. What now concerns the tenant is the landlord’s plans to develop the campground and adjacent land. According to the landlord’s application for consent for the development, if the development proceeds, an area of land which includes the land occupied by the tenant, will vest in Auckland Council for public use. That will mean that the tenant will no longer be able to occupy the land.

6. If it comes to that, the tenant wants the landlord to move her to another part of the campground that she can lawfully occupy or move her to a suitable site elsewhere. One of her concerns is the considerable cost of moving her tiny home and container and she would expect the landlord to pay those costs.

Unlawful Premises

7. The tenant’s application refers to s36 of the Act which concerns legal impediments to occupation of the tenancy premises for residential purposes. It obliges the landlord to take all reasonable steps to ensure that there are no such impediments at the commencement of the tenancy.

8. At present, there are no such impediments and if they arise due to the vesting described above, they did not exist at the commencement of the tenancy. It follows that s36 does not apply here and any claims relating to it must be dismissed.

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Quiet Enjoyment

9. Under 38(2) of the Act the landlord must not cause or permit any interference with the peace, comfort, or privacy of the tenant in the tenant’s use of the premises. This is to protect the tenant’s right to have quiet enjoyment of the premises.

10. If the landlord proceeds with its development plans, it is possible, perhaps likely, that there will be an interference with the tenant’s quiet enjoyment of the premises. That may result in the tenant being entitled to compensation or exemplary damages, or both. But the tenant has not suffered any ill effects of the landlord’s proposed development, and so there has not been any breach of s38. Without a breach, the Tribunal cannot consider granting a remedy and so any claim under s38 must be dismissed.

Bond

11. A landlord must send any bond payment to the Bond Centre within 23 working days after the payment is received (s19(1) of the Act).

12. Breaching this obligation is an unlawful act for which the Tribunal may award exemplary damages up to a maximum of $1,500.00.

13. Where a party has committed an unlawful act intentionally, the Tribunal may award exemplary damages where it is satisfied it would be just to do so, having regard to the party’s intent, the effect of the unlawful act, the interests of the other party, and the public interest.

14. The landlord has failed to lodge the tenant’s bond in the sum of $600 that she paid when the tenancy commenced in February 2024.

15. I accept that the landlord may not have appreciated that it had that obligation until the Tribunal made its order on 27 March. But it has known, or should have known, of the obligation from that time. That is over two months ago and well over the 23 working days that the Act allows.

16. I find that the landlord has committed an unlawful act by failing to lodge the bond and that there should be an award of exemplary damages. It is important for the tenant to have the security of the bond held by the Bond Centre and it is an obligation that landlords should take seriously.

17. I note that the landlord denied that this was a tenancy even though it wrote to WINZ prior to the tenancy beginning requesting payment of rent and bond and described [NAME] as a “permanent tenant”. This failure to lodge the bond is, in my view, a continuation of the landlord’s lack of consideration for the tenant’s rights and interests.

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18. I find that an award of $600 is appropriate. I would point out to the landlord that if they do not now lodge the bond, there will be a continuing breach that could result in another award of exemplary damages against them. They would therefore be well advised to lodge the bond promptly.

Filing Fee

19. The tenant has had some success and so I have awarded the filing fee.

[NAME]

05 June 2025

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Please read carefully: Visit justice.govt.nz/tribunals/tenancy/rehearings-appeals for more information on rehearings and appeals.

Rehearings You can apply for a rehearing if you believe that a substantial wrong or miscarriage of justice has happened. For example: • you did not get the letter telling you the date of the hearing, or • the adjudicator improperly admitted or rejected evidence, or • new evidence, relating to the original application, has become available.

You must give reasons and evidence to support your application for a rehearing. A rehearing will not be granted just because you disagree with the decision. You must apply within five working days of the decision using the Application for Rehearing form: justice.govt.nz/assets/Documents/Forms/TT-Application-for-rehearing.pdf

Right of Appeal Both the landlord and the tenant can file an appeal. You should file your appeal at the District Court where the original hearing took place. The cost for an appeal is $260. You must apply within 10 working days after the decision is issued using this Appeal to the District Court form: justice.govt.nz/tribunals/tenancy/rehearings-appeals

Grounds for an appeal You can appeal if you think the decision was wrong, but not because you don’t like the decision. For some cases, there’ll be no right to appeal. For example, you can’t appeal: • against an interim order • a final order for the payment of less than $1000 • a final order to undertake work worth less than $1000.

Enforcement Where the Tribunal made an order about money or property this is called a civil debt. The Ministry of Justice Collections Team can assist with enforcing civil debt. You can contact the collections team on [PHONE] or go to justice.govt.nz/fines/civil-debt for forms and information.

Notice to a party ordered to pay money or vacate premises, etc. Failure to comply with any order may result in substantial additional costs for enforcement. It may also involve being ordered to appear in the District Court for an examination of your means or seizure of your property.

If you require further help or information regarding this matter, visit tenancy.govt.nz/disputes/enforcing- decisions or phone Tenancy Services on [PHONE].

Mēna ka hiahia koe ki ētahi atu awhina, kōrero ranei mo tēnei take, haere ki tenei ipurangi tenancy.govt.nz/disputes/enforcing-decisions, waea atu ki Ratonga Takirua ma runga [PHONE] ranei.

https://www.justice.govt.nz/tribunals/tenancy/rehearings-appeals https://www.justice.govt.nz/assets/Documents/Forms/TT-Application-for-rehearing.pdf https://www.justice.govt.nz/tribunals/tenancy/rehearings-appeals/ https://www.justice.govt.nz/fines/about-civil-debt/ https://www.tenancy.govt.nz/disputes/enforcing-decisions https://www.tenancy.govt.nz/disputes/enforcing-decisions http://www.tenancy.govt.nz/disputes/enforcing-decisions/

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A manaomia nisi faamatalaga poo se fesoasoani, e uiga i lau mataupu, asiasi ifo le matou aupega tafailagi: tenancy.govt.nz/disputes/enforcing-decisions, pe fesootai mai le Tenancy Services i le numera [PHONE].

Reasons: