Tenant Ordered to Pay Exemplary Damages for Unlawful Use of Premises
📌 In brief
The Tenancy Tribunal ordered the tenant to pay the landlord $1,077.00 including exemplary damages for using the premises unlawfully. The Tribunal found that the tenant's actions warranted the award of exemplary damages under the Residential Tenancies Act 1986.
⚖️ Legal holding
A tenant is entitled to exemplary damages for using the premises unlawfully under the Residential Tenancies Act 1986.
📖 What the law says
This section outlines a tenant's responsibilities, including paying rent on time, keeping the premises mainly for living, maintaining cleanliness, and notifying the landlord of damage or repair needs. It also covers what a tenant must do when moving out, such as leaving the premises clean and tidy and removing all belongings and rubbish.
This section allows a landlord or tenant to ask the Tenancy Tribunal to order another person to pay exemplary damages if that person has committed an unlawful act. However, such an application must be made within 12 months after the tenancy ends for certain unlawful acts.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal ordered the tenant to pay the landlord $1,077.00 including exemplary damages.
📜 Headnote Official document
The Tenancy Tribunal ordered the tenant to pay the landlord $1,077.00 including exemplary damages for using the premises unlawfully. The Tribunal found that the tenant's use of the premises for an unlawful purpose justified the award of exemplary damages under the Residential Tenancies Act 1986.
📚 Full judgment Official document
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[2025] NZTT 4940533
TENANCY TRIBUNAL - Invercargill | Waihōpai
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. [NAME] and [NAME] must pay [COMPANY] - As Agent For [COMPANY] $1,077.00 calculated in the table below immediately.
Description Landlord Tenant Insurance excess $500.00 Exemplary damages $1,550.00 Filing fee reimbursement $27.00 Total award Less bond withheld from balance of bond and insurance excess previously paid for inrelation to this claim
$2,077.00 500.00
500.00
Total payable by Tenant to Landlord $1,077.00
Reasons:
1. Both parties attended the hearing.
2. The tenancy came to an end on 17 June 2024. Meth testing was completed that recorded some very high readings.
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3. Lucky for the tenant, the landlords insurance covered the clean up costs and only one insurance excess applied.
4. [COMPANY] - As Agent For [COMPANY] claims the tenant has used the premises unlawfully, by using methamphetamine in the property and therefore seeks exemplary damages.
5. 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.
6. 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.
7. The tenant took full responsibility and did not dispute the claim. She was very remorseful and embarrassed.
8. 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.
9. The bond has previously been returned to the owner for payment of the excess for this claim and for another claim together with rent arrears. This has been taken into consideration in the calculations.
10. [COMPANY] - As Agent For [COMPANY] has wholly succeeded with the claim I must reimburse the filing fee.
S Munro
11 February 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:
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The tenant used the premises unlawfully by using methamphetamine.
- The tenant did not dispute the claim and took full responsibility.
- Exemplary damages are allowed under the Residential Tenancies Act 1986 for intentional unlawful acts.
- The landlord's insurance covered cleanup costs, reducing the total amount owed.
❌ Tends to be rejected
- The tenant's remorse and embarrassment were not sufficient to avoid exemplary damages.
- The bond previously returned to the owner was considered, but did not fully cover the damages claimed.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal ordered the tenant to pay the landlord $1,077.00 including exemplary damages.
What was the dispute about?
The dispute was about whether the tenant should be ordered to pay exemplary damages for using the premises unlawfully.
How did the court decide, and why?
The court decided in favour of the landlord, finding that the tenant's use of the premises for an unlawful purpose warranted the award of exemplary damages.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 40(3A)(c) and 109(3) were applied.
What was the argument that mattered most?
The argument that mattered most was that the tenant had used the premises unlawfully, which justified the award of exemplary damages.
Was the decision for or against the person who brought the case?
The decision was for the landlord, who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation could be ordered to pay exemplary damages if they use their premises unlawfully.
What evidence or documents mattered?
The judgment does not specify the exact evidence or documents that mattered.