exemplary damages
📖 What is exemplary damages? Meaning and definition
Exemplary damages are awarded in specific situations where a landlord or tenant has committed a significant breach of their responsibilities under a tenancy agreement or the Residential Tenancies Act. Unlike other forms of compensation that aim to put the wronged party back in the position they would have been in had the breach not occurred, exemplary damages serve a punitive purpose. They are meant to deter similar behaviour in the future and reflect the Tribunal's disapproval of the conduct.
These damages are not automatically granted; the Tenancy Tribunal considers the specific circumstances of each case when deciding whether to award them. Examples from actual cases show exemplary damages being awarded to tenants for a landlord's failure to maintain parts of a property, for seizing a tenant's goods, or for not lodging a bond as required. The amount awarded can vary significantly depending on the severity of the breach and the discretion of the Tribunal.
For self-represented litigants, understanding exemplary damages is important because it highlights that the Tenancy Tribunal can award more than just direct financial losses. If you believe the other party's actions were particularly egregious or showed a disregard for their legal obligations, you might be able to seek exemplary damages in addition to other forms of compensation. You would need to clearly present your case to the Tribunal, demonstrating the nature and seriousness of the breach.
📋 Requirements
- A significant breach of landlord or tenant obligations must have occurred.
- The breach must be serious enough to warrant a punitive award, beyond mere compensation for loss.
- The Tenancy Tribunal must determine that exemplary damages are appropriate given the circumstances of the case.
📝 Procedure
- A party (e.g., a tenant) files an application with the Tenancy Tribunal seeking compensation, including exemplary damages.
- Both parties attend a hearing to present their claims and evidence.
- The Tribunal considers the evidence and arguments from both sides.
- The Tribunal determines if a breach occurred and if it warrants an award of exemplary damages.
- If awarded, the Tribunal specifies the amount of exemplary damages payable by one party to the other.
💡 Examples
- A tenant was awarded $500 in exemplary damages because the landlord failed to maintain the downstairs bathroom and kitchen.
- A tenant received $1,500 in exemplary damages when the landlord seized their goods and did not return them.
- A tenant was awarded $150 in exemplary damages due to the landlord's failure to lodge the bond as required by law.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What is the difference between exemplary damages and regular compensation?
Regular compensation aims to cover your financial losses and put you back in the position you were in before the breach. Exemplary damages, however, are awarded to punish the breaching party for serious misconduct and to deter similar actions in the future, rather than just covering your losses.
How much can I get in exemplary damages?
The amount of exemplary damages varies greatly depending on the severity of the breach and the Tenancy Tribunal's discretion. Awards seen in cases range from $150 for non-lodgement of a bond to $1,500 for seized goods, and $500 for maintenance failures.
Do I always get exemplary damages if the other party breaches the tenancy agreement?
No, exemplary damages are not automatically awarded for every breach. They are reserved for serious breaches where the Tribunal believes a punitive award is necessary due to the nature of the misconduct.
Can a landlord claim exemplary damages against a tenant?
The provided cases show tenants being awarded exemplary damages against landlords. However, in principle, if a tenant's actions constitute a sufficiently serious breach, a landlord could potentially seek exemplary damages, though this is less commonly seen in the provided examples.
What kind of breaches might lead to exemplary damages?
Based on the cases, breaches that have led to exemplary damages include a landlord's failure to maintain essential parts of a property, unlawfully seizing a tenant's belongings, and failing to lodge a bond as required by law.
Do I need a lawyer to claim exemplary damages?
While you can represent yourself, as a self-represented litigant, understanding the specific legal requirements and presenting a strong case for exemplary damages can be complex. Consulting with a qualified lawyer or legal advisor could help you assess your claim and prepare your application effectively.