Published tribunal order
Tenancy Tribunal case 4695190 — Exemplary damages
Decided 11 Dec 2023 · Published 11 Dec 2023 · Application 4695190
- Exemplary damages
Party names are redacted in the official published order.
Order
- [The landlord/s] must pay [The tenant/s] $2,970.44 immediately.
Reasons
- Both parties attended the hearing.
- The tenant seeks the return of his bond, exemplary damages for the bond not being lodged with the bond centre, and compensation/exemplary damages for the landlord terminating the tenancy without grounds. The tenant seeks a total of $3,200.00.
- The tenant agrees to pay $929.26 to the landlord for damage to the shower so this will be taken into account when considering any monetary awards. Bond
- [The tenant/s] claims the landlord has not lodged the bond with the Bond Centre within the required time.
- A landlord must send any bond payment to the Bond Centre within 23 working days after the payment is received. See section 19(1) Residential Tenancies Act 1986 (RTA).
- Breaching this obligation is an unlawful act for which the Tribunal may award exemplary damages up to a maximum of $1,500.00. See section 19(2) and Schedule 1A Residential Tenancies Act 1986.
- The landlord says he did not know he should have lodged the bond.
- Where a party has committed an unlawful act intentionally, the Tribunal may award exemplary damages where it is satisfied it would be just to do so, having regard to the party’s intent, the effect of the unlawful act, the interests of the other party, and the public interest. See section 109(3) Residential Tenancies Act 1986.
- The bond is the tenants’ money and must be lodged with the Bond Centre within the statutory time limits to protect the tenants’ interests. Lodging a bond is not a conditional obligation but a mandatory one and it is in the public interest that landlords fulfil their obligations under the Act. If no penalty is imposed there can be no deterrent.
- I consider exemplary damages of $500.00 to be a just and appropriate award in this case.
Did the landlord terminate the tenancy unlawfully?
- The tenant claims that the landlord has breached their obligations by terminating the tenancy with only 4 days’ notice. The tenant says he was forced to live in his car.
- Under section 60AA RTA a landlord must not give notice to terminate the tenancy or apply to the Tribunal for such an order, knowing they are not entitled to do so.
- Breaching any of these obligations without a reasonable excuse is an unlawful act for which exemplary damages may be awarded up to a maximum of $6500.00. See section 60AA and Schedule 1A Residential Tenancies Act 1986.
- The landlord does not dispute he gave 4 days’ notice to the tenant. The landlord was notified by neighbours about a domestic incident at the premises which the tenant does not deny. The landlord told the tenant he had to be gone by the weekend.
- I find the landlord is in breach of the notice requirements under section 51 RTA and he has committed an unlawful act under section 60AA RTA.
- Where a party has committed an unlawful act intentionally, the Tribunal may award exemplary damages where it is satisfied it would be just to do so, having regard to the party’s intent, the effect of the unlawful act, the interests of the other party, and the public interest. See section 109(3) Residential Tenancies Act 1986.
- While I acknowledge that the landlord had valid concerns about the tenant and his now ex-partner, there is also a high public interest in ensuring that landlords do not take matters into their own hands and arbitrarily end tenancies without grounds as required by the RTA.
- I make an award of $1,400.00 exemplary damages/compensation for the breach and unlawful act, which is equivalent to 4 weeks rent.
- As the tenant has partly succeeded with the claim, the landlord must reimburse the filing fee.
- The overall award to the tenant is therefore $2,041.18 which is calculated as $1,920.44 exemplary damages/compensation and filing fee, less $929.26 for the shower, plus the bond held by the landlord of $1,050.00. Because the landlord has not filed a counterclaim the bond must be refunded in full to the tenant.
- Both parties have consented to name suppression.