Tenant Wins Exemplary Damages Against Landlord for Bond Lodgement Failure
📌 In brief
The Tenancy Tribunal ruled in favour of a tenant who claimed that the landlord failed to lodge the bond payment with the Bond Centre within the required timeframe. As a result, the tenant was awarded $400 in exemplary damages.
⚖️ Legal holding
A tenant is entitled to exemplary damages if the landlord fails to lodge the bond payment with the Bond Centre within 23 working days.
📖 What the law says
When a landlord receives a bond payment, they must give the person who paid it a written receipt right away. This receipt needs to show the address of the property, the amount and type of payment, the date, and the name of the payer. The landlord must also send the bond amount to the chief executive within 23 working days of receiving it.
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, like those related to bond duties, this application 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 exemplary damages to the tenant for the landlord's failure to lodge the bond with the Bond Centre within the required timeframe.
📜 Headnote Official document
The Tenancy Tribunal awarded $400 in exemplary damages to the tenant for the landlord's failure to lodge the bond payment with the Bond Centre within the required 23 working days, as mandated by the Residential Tenancies Act 1986.
📚 Full judgment Official document
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[2025] NZTT 5175231
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Tenant
RESPONDENT: [redacted] for [COMPANY]
Landlord
TENANCY ADDRESS: Unit/Flat [ADDRESS], [POSTCODE]
ORDER
1. [COMPANY] as Agent For [COMPANY] must pay [NAME] $427.00 immediately.
Description Landlord Tenant Filing fee reimbursement $27.00 Exemplary damages $400.00 Total award $427.00 Total payable by Landlord to Tenant $427.00
Reasons:
1. Both parties attended the hearing by telephone conference.
2. [NAME] confirmed that since he filed the application, he has received a full refund of his bond.
3. [NAME] claims the landlord has not lodged the bond with the Bond Centre within the required time.
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4. 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.
5. 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.
6. The landlord confirmed that they received the bond payment and [NAME] provided evidence of the completed bond form dated 13 March 2024.This was not signed by the landlord.
7. The landlord agreed that due to an administrative error the bond payment made by [NAME] was entered into their system and held in the tenant ledger trust account but was never recognised as a bond payment. The bond was never lodged with the bond centre.The tenancy ended on 4 February 2025 and the bond was refunded on 24 February 2025.
8. I find they have 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 bond is the tenant’s money held by an independent body as a surety for end of tenancy claims. The tenant did not have the use or benefit of the money for almost a year as it was held in the tenant’s ledger.
11. The landlord is a professional property management company, and this discrepancy should have been picked up. It is in the interests of tenants that the landlord complies with the requirements of the RTA. I am satisfied that it is just to award exemplary damages of $400.00.
12. [NAME] has wholly succeeded with the claim I must reimburse the filing fee.
T Harris
24 March 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 [NAME] 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 failed to lodge the bond payment with the Bond Centre within the required 23 working days.
- The landlord's failure to lodge the bond was an unlawful act.
- The tenant was deprived of the use or benefit of their bond money for almost a year.
- The landlord is a professional property management company and should have identified the discrepancy.
- It is in the public interest for landlords to comply with the Residential Tenancies Act.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal awarded $400 in exemplary damages to the tenant for the landlord's failure to lodge the bond payment with the Bond Centre within the required timeframe.
What was the dispute about?
The dispute was about the landlord's failure to lodge the bond payment with the Bond Centre within the required 23 working days.
How did the court decide, and why?
The court decided in favour of the tenant because the landlord's failure to lodge the bond payment was found to be an unlawful act under the Residential Tenancies Act 1986.
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's failure to lodge the bond payment within the required timeframe was an unlawful act, entitling the tenant to exemplary damages.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, the tenant.
What does this mean for someone in a similar situation?
This means that if a landlord fails to lodge a bond payment with the Bond Centre within the required timeframe, the tenant may be entitled to exemplary damages.
What evidence or documents mattered?
Evidence included the completed bond form and confirmation that the bond was never lodged with the Bond Centre.