Tenant wins bond return and exemplary damages from landlord
📌 In brief
The Tenancy Tribunal ruled in favour of the tenant, ordering the landlord to pay $2,627.00 including $800.00 in exemplary damages for failing to lodge the bond as required by law. The Tribunal found the landlord intentionally failed to lodge the bond, causing financial pressure and stress to the tenant.
⚖️ Legal holding
A landlord must return the bond to tenants when their tenancy ends and failing to do so can result in exemplary damages.
📖 What the law says
When a landlord receives a bond payment, they must immediately give the person who paid a written receipt. This receipt needs to show the address of the property, the amount and type of payment, the date it was paid, and the name of the person who paid it. The landlord must also send the bond money to the chief executive within 23 working days of receiving it, along with a statement.
A landlord or tenant can ask the Tenancy Tribunal to order another person to pay exemplary damages if that person has committed an unlawful act. For certain unlawful acts related to bonds, this request must be made no later than 12 months after the tenancy ends.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal awarded the tenants $2,627.00 including exemplary damages for the landlord's failure to lodge the bond.
📜 Headnote Official document
The Tenancy Tribunal awarded the tenant $2,627.00 including $800.00 in exemplary damages for the landlord's failure to lodge the bond as required by law. The Tribunal found the landlord intentionally failed to lodge the bond and caused financial pressure and stress to the tenant.
📚 Full judgment Official document
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[2025] NZTT 5119490
TENANCY TRIBUNAL - Video Location
APPLICANT: [redacted]
Tenant
RESPONDENTS: [redacted]
ORDER
1. [COMPANY] must pay [NAME] and [NAME] $2,627.00 immediately, calculated as shown in table below:
2. The claim against [COMPANY] T/A [NAME] is withdrawn.
Description Landlord Tenant Return of bond $1,800.00 Exemplary damages $800.00 Filing fee reimbursement $27.00 Total award $2,627.00 Total payable by Landlord to Tenant $2,627.00
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Reasons:
1. [COMPANY] was represented at today’s hearing by [NAME]. Both tenants attended the hearing. [COMPANY] was not represented at today’s hearing.
2. The hearing was held by video conference although the landlord appeared by telephone.
3. At the beginning of today’s hearing the claim against [NAME] was withdrawn. This was by agreement between the tenants and [COMPANY].
4. The tenants claim a return of the $1800.00 bond that they paid, reimbursement of the filing fee and they also seek an award of exemplary damages against [COMPANY] for their failure to lodge the bond.
5. It was undisputed that the tenants had paid the bond to the landlord and that they were entitled to a return of that bond when their tenancy ended.
6. With regard to the issue of exemplary damages, a landlord must send any bond payment to the Bond Centre within 23 working days after the payment is received. See section 19(1) Residential Tenancies Act 1986.
7. Breaching this obligation is an unlawful act for which the Tribunal may award exemplary damages up to a maximum of $1,500.00. See section 19(2) and Schedule 1A Residential Tenancies Act 1986.
8. Both parties accept that Tenancy Services have been unable to find the bond. In this regard, then, the landlord has committed an unlawful act.
9. 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.
10. The first thing that must be determined in making an award of exemplary damages is whether the landlord intentionally failed to lodge the bond.
11. I find that the landlord intentionally failed to lodge the bond because they could supply no evidence at today’s hearing that it had been lodged. Further to this, when having been advised that the bod was not at Tenancy Services, there was
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very little evidence of the landlord trying to sort this issue out so that the tenants could be reimbursed the bond they paid.
12. In making an award of $800.00 in exemplary damages I have taken into account the tenants’ evidence that the landlord’s failure to return the bond to them as agreed has put them under considerable financial pressure and caused them a lot of stress.
13. I have also taken into account that awards of exemplary damages are intended to be punitive in nature and that the public has considerable interest in landlords abiding by their obligations, particularly when it comes to dealing with money that belongs to tenants.
14. I have also ordered the landlord to reimburse the filing fee to the tenants because the tenants were wholly successful in their claim.
C ter Haar
18 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 landlord intentionally failed to lodge the bond.
- The tenants were under considerable financial pressure due to the lack of bond return.
- The public interest in ensuring landlords abide by their obligations supports the award of exemplary damages.
- The tenants were wholly successful in their claim, thus the filing fee was reimbursed.
❌ Tends to be rejected
- The landlord provided no evidence that the bond had been lodged.
- There was very little evidence of the landlord trying to resolve the issue of the missing bond.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal decided to award the tenant $2,627.00 including $800.00 in exemplary damages for the landlord's failure to lodge the bond.
What was the dispute about?
The dispute was about the landlord's failure to lodge the bond with the Bond Centre as required by law, leading to financial pressure and stress for the tenant.
How did the court decide, and why?
The court decided to award the tenant $2,627.00 including $800.00 in exemplary damages because the landlord intentionally failed to lodge the bond, breaching their legal obligations.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 19(1), 19(2), and 109(3) were applied.
What was the argument that mattered most?
The argument that mattered most was that the landlord intentionally failed to lodge the bond, causing financial pressure and stress to the tenant.
Was the decision for or against the person who brought the case?
The decision was for the tenant who brought the case.
What does this mean for someone in a similar situation?
For someone in a similar situation, it means that a landlord's failure to lodge a bond as required by law can result in significant financial compensation, including exemplary damages.
What evidence or documents mattered?
The evidence included the tenants' testimony about the financial pressure and stress caused by the landlord's failure to lodge the bond, and the lack of evidence from the landlord showing that the bond had been lodged.