Tenant Wins Full Bond Refund Due to Lack of Counterclaim
📌 In brief
In this case, the Tenancy Tribunal ruled that the tenant is entitled to the full bond refund because the landlord failed to file a counterclaim as required by law. The ruling emphasises the importance of landlords adhering to legal procedures when disputing bond refunds.
⚖️ Legal holding
A tenant is entitled to the full bond refund if the landlord fails to file a counterclaim as required by law.
📖 Technical summary
Tenant successfully claims bond refund due to landlord's failure to file a counterclaim.
📜 Headnote Official document
The Tenancy Tribunal ruled that the tenant is entitled to the full bond refund because the landlord failed to file a counterclaim as required by Section 22B(2) of the Residential Tenancies Act 1986.
📚 Full judgment Official document
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[2025] NZTT 5124860
TENANCY TRIBUNAL AT [Event location suppressed]
APPLICANT: [redacted]
Tenant
RESPONDENT: [redacted] Agent For [NAME]
Landlord
TENANCY ADDRESS: [Tenancy address suppressed]
ORDER
1. [COMPANY] T/As [COMPANY]) As Agent For [NAME] must pay [[NAME]] $27.00 immediately, being reimbursement of the Tribunal filing fee.
2. The Bond Centre is to pay the bond of $2,440.00 ([Bond number suppressed]) to [[NAME]] immediately.
Reasons:
1. Both parties attended the hearing.
2. The tenant has applied for refund of the bond. The landlord says that it has a claim against the bond but has not filed a counterclaim with Tenancy Services.
3. Bond is tenant money, unless and until the landlord proves a claim to it.
4. Section 22B(2) Residential Tenancies Act 1986 provides that, where a tenant applies for refund of the bond, and the landlord seeks payment from the bond, the landlord must file an application setting out the details of the counterclaim.
5. The requirement for the landlord to file a counterclaim is mandatory. Because the landlord has not filed a counterclaim the bond is refunded in full to the tenant.
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6. This does not prevent the landlord from filing a claim against the tenant at a later date. It just means that, if the landlord’s claim is successful, there is no bond to put towards any monetary award made.
7. As the tenants were successful with this application, I have awarded reimbursement of the Tribunal application fee and granted their request for suppression of their details.
R Morgan 02 April 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 was entitled to a full bond refund because the landlord did not file a counterclaim.
- The landlord's requirement to file a counterclaim is a mandatory step.
- The bond is considered the tenant's money until the landlord successfully proves a claim to it.
- The tenant was reimbursed for the Tribunal filing fee because their application was successful.
❌ Tends to be rejected
- The landlord's claim against the bond was rejected because they did not file a counterclaim.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The decision decided that the tenant is entitled to the full bond refund because the landlord failed to file a counterclaim as required by law.
What was the dispute about?
The dispute was about whether the landlord could claim part of the bond without filing a counterclaim as required by law.
How did the court decide, and why?
The court decided in favour of the tenant, emphasising that the bond is tenant money unless the landlord files a valid counterclaim.
Which laws or rules were applied?
Section 22B(2) of the Residential Tenancies Act 1986 was applied.
What was the argument that mattered most?
The argument that mattered most was that the landlord failed to file a counterclaim as required by law, thus invalidating their claim to the bond.
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?
For someone in a similar situation, it means that they are entitled to the full bond refund if the landlord fails to file a counterclaim as required by law.
What evidence or documents mattered?
The judgment does not specify any particular evidence or documents that mattered.