reimbursement
📖 What is reimbursement? Meaning and definition
In New Zealand tenancy law, reimbursement often refers to the Tenancy Tribunal ordering one party to pay back costs incurred by the other party. This commonly includes the filing fee for an application to the Tribunal, which is initially paid by the applicant. If the applicant is successful in their claim, the Tribunal may order the other party to reimburse this fee.
Reimbursement can also extend to other specific costs. For example, if a landlord incurs expenses that are directly a result of a tenant's breach of their obligations, the Tribunal may order the tenant to reimburse the landlord for those costs. A common instance of this is when a landlord has to pay for methamphetamine testing due to a tenant's illegal drug use on the property, and the test results are positive. The Tribunal may then order the tenant to reimburse the landlord for these testing costs.
The purpose of reimbursement is to ensure that the successful party is not out of pocket for expenses directly related to their application or the other party's actions. The amount to be reimbursed is typically specified in the Tribunal's order, often detailed in a table showing the breakdown of costs awarded. This ensures clarity on what needs to be paid back and by whom.
📋 Requirements
- One party has incurred a cost (e.g., filing fee, testing costs).
- The party seeking reimbursement has wholly or partially succeeded in their claim before the Tenancy Tribunal.
- The cost is deemed appropriate to be awarded by the Tribunal in the circumstances.
- The cost is directly related to the tenancy or the application made to the Tribunal.
📝 Procedure
- A party makes an application to the Tenancy Tribunal and pays the associated filing fee.
- The Tribunal hears the case, considering the claims and evidence from both parties.
- If the applicant is successful in their claim, the Tribunal determines if reimbursement of costs is appropriate.
- The Tribunal issues an order specifying the amount to be reimbursed and by which party, often detailing it in a payment table.
- The party ordered to pay must make the reimbursement immediately, or as specified in the order.
💡 Examples
- A landlord applies to the Tenancy Tribunal to terminate a tenancy due to a tenant's breach, and the tenant agrees to the termination; the Tribunal orders the tenant to reimburse the landlord's $27 filing fee.
- A landlord pays for methamphetamine testing after a tenant's illegal drug use, and the Tribunal orders the tenant to reimburse the landlord for the $456.50 testing costs.
- A landlord applies for rent arrears and reimbursement of the filing fee after the tenancy ends, and the Tribunal orders the tenants to pay the arrears and the $27 filing fee.
- Tenants apply to end their fixed-term tenancy early and for reimbursement of their filing fee, but their application is denied, meaning they are not reimbursed.
❓ Frequently asked questions
What kinds of costs can be reimbursed by the Tenancy Tribunal?
Based on the cases, common costs include the Tenancy Tribunal filing fee and specific expenses like methamphetamine testing costs if they are a direct result of a tenant's breach of obligations.
Do I automatically get my filing fee back if I win my case?
If you wholly succeed with your claim, the Tenancy Tribunal must reimburse the filing fee. However, if your claim is only partially successful or if the order is made by consent, the Tribunal will decide if reimbursement is appropriate.
What if the other party doesn't pay the reimbursement ordered by the Tribunal?
The Tenancy Tribunal order will state that payment must be made immediately or by a specified date. If the other party fails to pay, you may need to take further steps to enforce the order, which can involve applying to the District Court.
Can a tenant claim reimbursement from a landlord?
Yes, a tenant can apply to the Tenancy Tribunal for various reasons, and if their application is successful, the Tribunal could order the landlord to reimburse the tenant for costs, such as the filing fee, if deemed appropriate.
Is reimbursement the same as compensation?
While both involve payments, reimbursement specifically means paying back money that was already spent or is owed for a specific cost, like a filing fee or testing expense. Compensation, on the other hand, often refers to payment for loss or damage suffered, which can be broader.
What if I can't afford to pay the reimbursement ordered by the Tribunal?
The Tenancy Tribunal's order is legally binding. If you are struggling to pay, you should seek legal advice on your options, as failure to comply with an order can lead to further enforcement actions.