compensation claim
📖 What is compensation claim? Meaning and definition
In New Zealand tenancy law, a compensation claim is how a tenant or landlord seeks financial redress for breaches of the Residential Tenancies Act 1986 or the tenancy agreement. This claim is typically heard by the Tenancy Tribunal, which evaluates the evidence presented by both parties.
For example, a tenant might claim compensation if a landlord fails to maintain the premises, leading to ongoing issues, or if the landlord breaches specific sections of the Act, such as not providing proper notice when advertising a property for sale. Landlords can also make compensation claims, such as for rent arrears or other financial losses following the end of a tenancy.
The Tribunal will assess whether a breach occurred and if that breach caused the claimed loss. Even if a technical breach is found, the Tribunal may reject a claim if there isn't sufficient evidence of actual loss or if the breach is deemed minor and did not cause significant harm. The goal is to put the affected party in the financial position they would have been in had the breach not occurred.
📋 Requirements
- An alleged failure or breach by the other party (e.g., failure to maintain premises, failure to give written notice)
- Evidence supporting the alleged failure or breach
- Evidence of actual loss or damage suffered as a direct result of the breach
- A specific amount of compensation being sought
📝 Procedure
- An application is made to the Tenancy Tribunal by the tenant or landlord.
- Both parties attend a hearing, often by telephone or in person.
- Parties present their evidence and arguments to the Tribunal.
- The Tribunal Member considers the evidence and makes a decision, which may include dismissing the claim or ordering compensation.
💡 Examples
- A tenant sought compensation and exemplary damages because their landlord allegedly failed to maintain the premises over a lengthy period, despite persistent complaints.
- Tenants claimed compensation for rent payable after their landlord advertised the property for sale without giving them the required written notice.
- A landlord applied for rent arrears and compensation following the early termination of a tenancy, seeking additional rent for the period until the property was re-let.
- A compensation claim was dismissed because the alleged breach, while technical, did not have sufficient evidence of actual loss to the tenants.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What kind of issues can I claim compensation for as a tenant?
You can claim compensation for issues like a landlord's failure to maintain the property, breaches of your privacy, or not following proper procedures for ending a tenancy, provided you can show you suffered a loss.
Can a landlord make a compensation claim against a tenant?
Yes, landlords can claim compensation for things like unpaid rent (rent arrears), damage to the property beyond fair wear and tear, or costs incurred due to a tenant breaching the tenancy agreement.
What is the difference between compensation and exemplary damages?
Compensation aims to cover actual losses or harm suffered, putting the party back in the position they would have been in. Exemplary damages are awarded to punish the breaching party for particularly bad behaviour and deter similar conduct, rather than to compensate for a specific loss.
Do I need strong evidence to make a compensation claim?
Yes, the Tenancy Tribunal requires sufficient evidence to support both the alleged breach and the financial loss you are claiming. Without adequate evidence, your claim may be dismissed, even if a breach occurred.
What if the breach was only 'technical'?
A technical breach means a rule was broken, but it might not have caused significant harm or loss. The Tribunal may reject a compensation claim for a technical breach if there is no sufficient evidence that it caused you actual financial loss.
How long does it take for a compensation claim to be resolved?
The timeframe can vary depending on the complexity of the case and the Tenancy Tribunal's schedule. It involves filing an application, attending a hearing, and then waiting for the Tribunal's decision.