Tenant's Request for Exemplary Damages Due to False Water Rates Invoices and Retaliatory Notice Denied
📌 In brief
The Tenancy Tribunal denied the tenant's request for extra damages due to false water bills and retaliatory notice to end the lease. The denial was based on procedural issues and the lack of a statutory basis under the Residential Tenancies Act 1986.
⚖️ Legal holding
A tenant cannot obtain exemplary damages for false water rates invoices or retaliatory notice unless the specific conditions under the Residential Tenancies Act are met.
📖 What the law says
This rule allows a tenant to ask the Tenancy Tribunal to cancel a notice ending their tenancy if they believe the landlord gave the notice because the tenant exercised a right or made a complaint. The tenant must apply within 14 working days of receiving the notice.
This rule requires landlords to keep proper business records of all rent payments and bond amounts. Failing to keep these records is considered an unlawful act.
This rule allows a landlord, tenant, or the chief executive to ask the Tribunal for exemplary damages if another person has committed an unlawful act. However, there are time limits for making such an application, generally 12 months after the tenancy ends for certain unlawful acts.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The claimant's request for exemplary damages was denied due to procedural issues and lack of statutory basis.
📜 Headnote Official document
The Tenancy Tribunal denied the claimant's request for exemplary damages for false water rates invoices and retaliatory notice, citing procedural issues and the lack of a statutory basis under the Residential Tenancies Act 1986.
📚 Full judgment Official document
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[2025] NZTT 5034560
TENANCY TRIBUNAL - Whangarei | Whangārei-terenga-parāoa
APPLICANT: [redacted]
Tenant
RESPONDENT: [redacted]
Landlord
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. [COMPANY] is to pay the bond of $800.00 to [NAME] immediately.
Reasons:
Background
1. This application is closely related to application 5034573, which was brought by [NAME]. [NAME] is Mr [NAME]’s nephew. [NAME] has disabilities and Mr [NAME] is his caregiver. Mr [NAME] and [NAME] lived in neighbouring units 8 and 9 at [ADDRESS], from December 2016 until November 2024.
2. Mr [NAME]’s application sought compensation for the landlord’s failure to maintain the common area at the rear of the units, compensation for the landlord failing to prevent other tenants from obstructing his carport, exemplary damages for the landlord issuing false water rates invoices, exemplary damages for retaliatory notice, and refund of the bond.
3. This application, which is brought by Mr [NAME] on [NAME]’s behalf, seeks exemplary damages for false water rates invoices and retaliatory notice, and refund of the bond.
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Exemplary damages
4. I address these claims in detail in my decision in respect of Mr [NAME]’s application1. The exact same considerations apply in respect of this application.
5. In summary:
a. Mr [NAME] proved that the landlords issued false water rates invoices to himself and to [NAME].
b. The Tribunal may only award exemplary damages where the Residential Tenancies Act 1986 (“RTA”) specifies that a breach of a particular section is an “unlawful act”.
c. The landlords’ act of issuing false water rates is clearly unacceptable. The RTA states that a landlord commits an unlawful act if they fail to keep “proper business records” in respect of rent and bond.2 However, there is no unlawful act in the RTA that applies to the landlord issuing false water rates invoices.
d. Therefore, I am unable to make an award of exemplary damages in respect of this issue.
e. Similarly, I am unable to make an award of exemplary damages for retaliatory notice.
f. Mr [NAME] presented a strong argument that the termination notices issued to himself and [NAME] in May 2023 were retaliatory. The notices stated that the reason for termination was that the landlord intended to carry out substantial repairs / redevelopment of the premises. I made an order setting the notices aside on the grounds that the information available at that time did not evidence a genuine intention on the part of the landlord to carry out substantial work. Mr [NAME] noted that from then until the end of his and [NAME]’s tenancies, the landlord has taken no steps at all towards carrying out substantial work on units 8 or 9, or any of the other units.
g. I am unable to make an award of exemplary damages for this because:
i. At the relevant time, the law relating to exemplary damages for retaliatory notice stated that the Tribunal could only make an award of exemplary damages if the Tribunal also made an order setting aside the termination notice on the grounds that it was retaliatory. In this instance, I did not make an order setting aside the termination notice on the grounds that was retaliatory.3
1 Scott v Say & Pheng [2025] NZTT 5034573 2 Section 30 RTA 3 Section 54 RTA, as at May 2023. The wording of this section changed on 30 January 2025.
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ii. The application seeking exemplary damages filed more than 12 months after the unlawful act was committed.4
Bond
6. The tenancy has ended. The landlords have not made a claim seeking any amount owing at the end of the tenancy.
7. The tenant is entitled to receive the bond in full.
[NAME]
21 February 2025
4 Section 109(2)(b) RTA
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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 is entitled to receive the bond in full since the landlord did not claim any amount owing at the end of the tenancy.
❌ Tends to be rejected
- The tenant cannot obtain exemplary damages for false water rates invoices because the Residential Tenancies Act does not specify this as an unlawful act.
- The tenant cannot obtain exemplary damages for retaliatory notice because the termination notice was not set aside as retaliatory.
- The application for exemplary damages was filed more than 12 months after the unlawful act was committed, which is beyond the legal timeframe.
- The tenant's argument that the landlord did not carry out substantial work on the units was not sufficient to warrant exemplary damages for retaliatory notice.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal denied the tenant's request for exemplary damages for false water rates invoices and retaliatory notice.
What was the dispute about?
The dispute was about whether the landlord's actions of issuing false water rates invoices and giving a retaliatory notice to end the lease warranted exemplary damages.
How did the court decide, and why?
The court decided that the tenant was not entitled to exemplary damages because the specific conditions required by the Residential Tenancies Act were not met.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 54, 30, and 109 were applied.
What was the argument that mattered most?
The argument that mattered most was that the Residential Tenancies Act does not provide a statutory basis for exemplary damages in the context of false water rates invoices and retaliatory notice.
Was the decision for or against the person who brought the case?
The decision was against the person who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation may not be able to obtain exemplary damages unless the specific conditions under the Residential Tenancies Act are met.
What evidence or documents mattered?
The judgment does not specify any particular evidence or documents that mattered.