Tenant Ordered to Pay Damages After Illegal Cannabis Grow

OUTCOME: Allowed

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[2026] NZTT 5368510

TENANCY TRIBUNAL AT MANUKAU | TE TARAIPIUNARA RETIHANGA KI MANUKAU

APPLICANT: [redacted]

Landlord

RESPONDENT: [redacted]

Tenant

TENANCY ADDRESS: [ADDRESS], [POSTCODE]

ORDER

1. [RESPONDENT] must pay [APPELLANT] & [APPELLANT] $8,705.88 immediately, calculated as shown in table below:

Description Landlord Tenant Paint $1,090.42 Building materials $5,315.46 Cleaning $500.00 Exemplary damages - unlawful purpose $1,800.00 Total award $8,705.88 Total payable by Tenant to Landlord $8,705.88

Reasons:

1. The landlord attended the hearing held on 2 June 2026. The tenant did not attend the hearing.

2. A hearing was held on 24 February 2026 where rent arrears were awarded, and the bond was released to the landlord. That hearing was adjourned for the landlord to produce further evidence in relation to his claim for compensation and exemplary damages.

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3. The landlord claims compensation due to damage caused by the tenant in setting up a hydroponic cannabis growing operation at the premises. He also claims exemplary damages for the tenant using the premises for unlawful purposes.

4. The landlord produced photographs taken by the Police following the execution of a search warrant. Those photographs show significant alterations and growing apparatus in the premises. The Police also provided a record of the outcome of the search warrant which states,

“Full cannabis grow house discovered with 7 rooms and a cupboard turned into a sophisticated cannabis cultivation grow. 110 large budded plants and 111 seedlings seized for destruction…Illegal power bypass identified by [NAME]…”

5. The landlord produced a document from his [COMPANY] confirming that his insurance policy did not cover the damage caused by the tenants.

6. The landlord employed an [NAME], a [NAME] and a [NAME] to carry out repairs at the premises. Unfortunately, the landlord did not obtain or produce invoices from these contractors. It is not possible for the Tribunal to award compensation in the absence of invoices.

7. The landlord had provided many invoices for the purchase of materials to carry out the repairs. Some of the invoices are for kitchen and bathroom repairs which the photographs do not indicate were due to the damage caused by the tenants.

8. The landlord said that the damage consisted of large holes in the floors of all bedrooms and the ceiling of one bedroom.

9. I have awarded for paint and wood purchased to carry out these repairs. In addition, I have awarded for cleaning carried out by the owner as supported by the photographs.

Exemplary damages

10. [APPELLANT] & [APPELLANT] claims the tenant has used the premises unlawfully, by growing cannabis inside the premises.

11. A tenant must not use the premises or permit the premises to be used for an unlawful purpose. See section 40(2)(b) Residential Tenancies Act 1986.

12. Breaching this obligation is an unlawful act for which exemplary damages may be awarded up to a maximum of $1,800.00. See section 40(3A)(c) and Schedule 1A Residential Tenancies Act 1986.

13. It is unlawful to cultivate prohibited plants1 and cannabis is a prohibited plant2.

1 Section 9 Misuse of Drugs Act 1975

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14. The tenant either cultivated cannabis or allowed other people to cultivate cannabis in the premises. I find they have committed an unlawful act.

15. 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. See section 109(3) Residential Tenancies Act 1986.

16. Given the extent of the unlawful activity I find it is warranted to award the maximum amount allowed for this unlawful act. The maximum exemplary damages are only awarded in the most serious cases, where the Tribunal is satisfied that the conduct was intentional, harmful and a strong deterrent message is needed.

17. In this situation the conduct was deliberate and caused significant harm for the landlord.

18. While the landlord has been successful with this part of the landlord’s claim, the filing fee had been reimbursed in the order made on 24 February 2026.

N [NAME]

02 June 2026

2 Section 2 Misuse of Drugs Act 1975

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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, or the failure to make an order, where the amount in dispute on appeal is

less than $1000 • a final order to undertake work, or the failure to make an order, where the value of the

work in dispute on appeal is 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: