Tenant Wins Exemplary Damages and Bond Lodgment Order

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[2026] NZTT 5473057

TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA

APPLICANT: [redacted]

Tenant

RESPONDENT: [redacted]

Landlord

TENANCY ADDRESS: [Tenancy address suppressed]

ORDER

1. The Tribunal orders suppression of the tenants’ name and identifying details.

2. [COMPANY_1] As Agent For [COMPANY_1] must pay [The tenant/s] $928.00 immediately, as calculated in the table below:

Description Landlord Tenant Exemplary damages (failure to lodge bond) $900.00 Filing fee reimbursement $28.00 Total award $928.00 Total payable by Landlord to Tenant $928.00

3. [COMPANY_1] As Agent For [COMPANY_1] must lodge the bond of $2,200.00 with the [COMPANY_2] by 5pm on 18 June 2026.

Reasons:

1. The tenant attended the hearing. There was no appearance by the landlord however the owner of the property did attend the hearing.

2. There is no reason to believe that the landlord was not served with notice of the hearing and the hearing proceeded in their absence.

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3. The tenant has applied for exemplary damages for a failure to lodge the bond and also seeks an order that the bond be refunded.

4. The tenancy commenced on 30 January 2025. At that time, the tenants made payment of $2,200.00 for bond, in accordance with the tenancy agreement and provided evidence confirming payment.

5. The tenancy remains ongoing. The owner advised that the property manager has since been removed as property manager after difficulties with being forwarded rent. There is a dispute between the owner and property manager that sits outside the jurisdiction of this Tribunal.

Exemplary damages

6. A landlord must send any bond payment to the [COMPANY_2] within 23 working days after the payment is received. See section 19(1) Residential Tenancies Act 1986 (RTA).

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 RTA.

8. The landlord has breached their obligation to lodge the bond as the RTA requires. No reasons have been advanced as to why this did not occur. 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) RTA.

10. Considering the section 109 factors, I find exemplary damages should be awarded. I consider the breach intentional and have no evidence to the contrary. As a property manager, the landlord would have known that the bond needed to be lodged with the [COMPANY_2]. The effect for the tenants is that now, there is no security that the bond is being securely held, and in circumstances where the property manager is no longer manager the property and failing to respond to communications, that is very stressful. There are very strong interests for tenants and landlord to have the bond to be held at the [COMPANY_2].

11. In this case I consider an order of exemplary damages at the level of $900.00 would be indicated. That is 60% of the maximum level available. I have reached that figure as I am aware of other cases the Tribunal has considered against a property manager for similar bond breaches.

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Other matters

12. The tenants, understandably, sought to have the bond refunded to them. However, there is no explicit power within the RTA to order a refund of the bond to the tenants while the tenancy is ongoing.

13. I have instead ordered that the bond be lodged with the [COMPANY_2].

14. If the landlord fails to comply with this order, the tenants may apply for further remedies, including enforcement of this order and/or further exemplary damages.

15. Because [The applicant/s] have wholly succeeded with the claim I must also reimburse the filing fee.

[NAME_3] 11 June 2026

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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 [NAME_4]/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 [NAME_4]/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.[NAME_4]/disputes/enforcing-decisions https://www.[NAME_4]/disputes/enforcing-decisions http://www.[NAME_4]/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: [NAME_4]/disputes/enforcing-decisions, pe fesootai mai le Tenancy Services i le numera [PHONE].

Reasons: