compensation
📖 What is compensation? Meaning and definition
In New Zealand tenancy law, compensation is a common remedy sought and awarded by the Tenancy Tribunal. It aims to put the wronged party back in the position they would have been in had the breach not occurred, as much as money can allow. This can cover a range of issues, from a landlord failing to maintain the property to a tenant's goods being unlawfully seized.
The Tribunal calculates compensation based on the specific losses incurred. For example, if a landlord fails to maintain parts of the property like a back gate or hedges, or does not provide an agreed-upon house alarm, the tenant may be awarded compensation for these failures. Similarly, if a landlord seizes a tenant's personal property, the tenant can claim compensation for the value of those goods.
Compensation can also be awarded in situations where a tenant has incurred costs due to the landlord's actions, such as cleaning at the start of a tenancy that should have been done by the landlord. It is distinct from other awards like exemplary damages, which are given to punish a party for severe breaches, whereas compensation focuses on making good the loss.
📋 Requirements
- A party must have suffered a loss or harm.
- The loss or harm must be a direct result of the other party's actions or failures.
- The claim for compensation must be brought before the Tenancy Tribunal.
📝 Procedure
- One party files an application with the Tenancy Tribunal seeking compensation.
- Both parties attend a hearing to present their case and evidence.
- The Tribunal considers the evidence and determines if compensation is warranted.
- If awarded, the Tribunal calculates the specific amount based on the losses proven.
- An order is issued for the payment of the compensation.
💡 Examples
- A tenant was awarded $800 in compensation because the landlord failed to maintain the back gate and hedges, and did not provide a promised house alarm.
- A tenant received over $67,000 in compensation for various items like stone slabs, vinyl planking, and shipping containers that were seized and not returned by the landlord.
- A tenant sought compensation for cleaning costs at the start of the tenancy, which was included in the total award calculation.
- Compensation can be part of a larger financial settlement, alongside rent arrears, water rates, or bond payments.
❓ Frequently asked questions
What kind of things can I claim compensation for?
You can claim compensation for various issues, such as a landlord's failure to maintain the property (e.g., a broken gate or unkempt hedges), or if your personal belongings were unlawfully seized. It can also cover costs you incurred due to the other party's breach, like unexpected cleaning expenses.
Is compensation the same as exemplary damages?
No, compensation and exemplary damages are different. Compensation is awarded to cover a specific loss or harm you suffered, aiming to put you back in the position you were in. Exemplary damages, on the other hand, are awarded to punish a party for particularly bad behaviour and are usually a separate amount.
How is the amount of compensation decided?
The Tenancy Tribunal decides the amount of compensation based on the evidence presented about your actual losses. For example, if goods were seized, the compensation might be based on their value. For maintenance failures, it could reflect the impact on your tenancy.
Can I get compensation if my landlord didn't provide something they promised, like an alarm?
Yes, if a landlord fails to provide something agreed upon, such as a house alarm, you may be able to claim compensation for that failure, as seen in some Tribunal decisions.
What if I have to pay for something that was the landlord's responsibility, like initial cleaning?
If you incurred costs for something that was the landlord's responsibility, such as cleaning at the start of the tenancy, you can apply to the Tribunal for compensation to cover those expenses.
Do I need a lawyer to claim compensation?
While you can represent yourself at the Tenancy Tribunal, especially for straightforward claims, complex cases involving significant compensation amounts or unusual circumstances might benefit from legal advice. A qualified lawyer can help you understand your rights and present your case effectively.