What was Tenancy Tribunal case 4838500 about?

The tribunal order states: [The landlord/s] must pay [The tenant/s] $520.44 immediately in accordance

How much money was awarded in case 4838500?

Property Damage: $500.00 awarded to tenant; Filing Fee: $20.44 awarded to tenant

What type of tenancy dispute was case 4838500?

The primary dispute was Exemplary damages.

Where can I read the official tribunal order for case 4838500?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10420750-Tribunal_Order_Redacted.pdf.

What was Tenancy Tribunal case 4838500 about?

The tribunal order states: [The landlord/s] must pay [The tenant/s] $520.44 immediately in accordance

How much money was awarded in case 4838500?

Property Damage: $500.00 awarded to tenant; Filing Fee: $20.44 awarded to tenant

What type of tenancy dispute was case 4838500?

The primary dispute was Exemplary damages.

Where can I read the official tribunal order for case 4838500?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10420750-Tribunal_Order_Redacted.pdf.

New Zealand Tenancy Tribunal Case 4838500 — Exemplary damages

Claims and awards in Tenancy Tribunal application 4838500 — net $520.44 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Tenant	Reason
Exemplary damages	$500.00	Exemplary damages
Filing fee reimbursement	$20.44	Filing fee reimbursement
Net award	$520.44
Total payable by Landlord to Tenant	$520.44

Order

[The landlord/s] must pay [The tenant/s] $520.44 immediately in accordance with the following table:

Reasons

Both parties attended the hearing. [The landlord’s representative] represented the landlord.
An oral decision was given at the hearing, and this written order confirms and elaborates on that discussion.
[The tenant/s] seek exemplary damages on the basis that the landlord has not lodged the bond with the Bond Centre within the required time of 23 working days. They have provided evidence that they paid the bond on 10 October 2022 when the tenancy was commenced, however it was not lodged with the Bond Centre until 24 May 2023.
[The landlord’s representative]’s submission is that as the tenants immediately fell into rent arears at the commencement of the tenancy, he had a discussion with [Tenant 1] and she agreed that the bond monies could be paid towards rent arrears. His recollection is that the bond was not submitted to the Bond Centre until all the extensive rent arrears were resolved and there were sufficient funds for the bond to be lodged.
He notes that for the first months of the tenancy the tenants were in significant rent arrears and as such [The landlord/s] made 1 a number of applications to the Tribunal for relief. He says their focus was on keeping the tenants in the tenancy whilst also ensuring that the rent was paid which is why payment of an amount towards the bond was not followed up for some time.
His submission is that the bond was applied to the rent in an effort to assist the tenants to sustain their tenancy rather than any underhand action of theirs. Had it not been applied, the tenants would have been in 21 days arrears earlier than they were and as such the tenancy would have been in jeopardy.
He is clear that they received no benefit from not lodging the bond until they did and that he had agreement from the tenants to use the bond monies for the rent.
[Tenant 2] is likewise clear that there was no such agreement reached. She says she was very surprised in May when she received confirmation that the bond had just been lodged and queried it with the Bond Centre. It was only then that she realised that her earlier payment had not been lodged.
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 RTA.
Section 19 of the RTA is very clear that when any money is received by a landlord by way of bond, it must be lodged at the Bond Centre. In considering the parties evidence, I find it more likely than not that there was not a clear agreement to use the bond money for rent, but most likely there was some form of discussion about it.
Given the importance of lodging a bond at the Bond Centre, any other allocation of such funds (i.e., to rent) would have to be very carefully and clearly 1 As they were obliged to do pursuant to section 49 of the Residential Tenancies Act 1986 contracted for. Bond money is tenant money and, in many cases, such as this one, Work and Income New Zealand (WINZ) pays it for that specific purpose.
Here there was no written agreement as to the use of the funds. [The landlord/s] has not chased up an alternate bond by way of reminder, 14-day notice or application to the Tribunal. Accordingly, I am not satisfied that there was an agreement to use the money for rent arrears.
Even had I been, section 11 of the RTA specifically prohibits a tenant from coming to an agreement with their landlord that evades the Act.
I therefore find that [The landlord/s] has breached section 19 of the RTA in failing to lodge the bond within 23 working days of receiving it.
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) RTA.
[The landlord/s] were and are aware of their obligations with respect to bonds, therefore I find that this was an intentional unlawful act.
In considering the tenants’ application for exemplary damages, as discussed at the hearing, I take into account the following: a. I accept [The landlord’s representative]’s submission that their use of the funds was in an effort to assist the tenants and he had understood he had their agreement to do so. b. [The landlord’s representative] has apologised to the tenants for any misunderstanding or inconvenience this situation has created for them. c. [The landlord/s] worked throughout this tenancy to assist the tenants to retain their tenancy despite their failure to pay rent and this action was to that end. d. The effect of the failure was to contribute to the distrust the tenants had of [The landlord/s] and their practices. e. It has not been easy for the tenants to bring their action to the Tribunal however they felt they had to, to redress the failure. f. The tenants have not suffered financially because of the failure. g. The administration practices of [The landlord/s] at the time were certainly lacking. h. [The landlord’s representative] agrees to pay $500 exemplary damages on the basis that their communications could have been clearer. i. The public interest in ensuring that bonds, being tenant monies, are held by an independent body.
Taking into account all of the above, I am satisfied that the offer of $500 exemplary damages is appropriate in the circumstances.
Because [The tenant/s] have wholly succeeded with the claim I must reimburse the filing fee.
Because this order is made in part by consent, I consider it appropriate pursuant to section 95A of the RTA to suppress all party identifying information.

Claims and awards in Tenancy Tribunal application 4838500 — net $520.44 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Tenant	Reason
Exemplary damages	$500.00	Exemplary damages
Filing fee reimbursement	$20.44	Filing fee reimbursement
Net award	$520.44
Total payable by Landlord to Tenant	$520.44

Order

[The landlord/s] must pay [The tenant/s] $520.44 immediately in accordance with the following table:

Reasons

Both parties attended the hearing. [The landlord’s representative] represented the landlord.
An oral decision was given at the hearing, and this written order confirms and elaborates on that discussion.
[The tenant/s] seek exemplary damages on the basis that the landlord has not lodged the bond with the Bond Centre within the required time of 23 working days. They have provided evidence that they paid the bond on 10 October 2022 when the tenancy was commenced, however it was not lodged with the Bond Centre until 24 May 2023.
[The landlord’s representative]’s submission is that as the tenants immediately fell into rent arears at the commencement of the tenancy, he had a discussion with [Tenant 1] and she agreed that the bond monies could be paid towards rent arrears. His recollection is that the bond was not submitted to the Bond Centre until all the extensive rent arrears were resolved and there were sufficient funds for the bond to be lodged.
He notes that for the first months of the tenancy the tenants were in significant rent arrears and as such [The landlord/s] made 1 a number of applications to the Tribunal for relief. He says their focus was on keeping the tenants in the tenancy whilst also ensuring that the rent was paid which is why payment of an amount towards the bond was not followed up for some time.
His submission is that the bond was applied to the rent in an effort to assist the tenants to sustain their tenancy rather than any underhand action of theirs. Had it not been applied, the tenants would have been in 21 days arrears earlier than they were and as such the tenancy would have been in jeopardy.
He is clear that they received no benefit from not lodging the bond until they did and that he had agreement from the tenants to use the bond monies for the rent.
[Tenant 2] is likewise clear that there was no such agreement reached. She says she was very surprised in May when she received confirmation that the bond had just been lodged and queried it with the Bond Centre. It was only then that she realised that her earlier payment had not been lodged.
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 RTA.
Section 19 of the RTA is very clear that when any money is received by a landlord by way of bond, it must be lodged at the Bond Centre. In considering the parties evidence, I find it more likely than not that there was not a clear agreement to use the bond money for rent, but most likely there was some form of discussion about it.
Given the importance of lodging a bond at the Bond Centre, any other allocation of such funds (i.e., to rent) would have to be very carefully and clearly 1 As they were obliged to do pursuant to section 49 of the Residential Tenancies Act 1986 contracted for. Bond money is tenant money and, in many cases, such as this one, Work and Income New Zealand (WINZ) pays it for that specific purpose.
Here there was no written agreement as to the use of the funds. [The landlord/s] has not chased up an alternate bond by way of reminder, 14-day notice or application to the Tribunal. Accordingly, I am not satisfied that there was an agreement to use the money for rent arrears.
Even had I been, section 11 of the RTA specifically prohibits a tenant from coming to an agreement with their landlord that evades the Act.
I therefore find that [The landlord/s] has breached section 19 of the RTA in failing to lodge the bond within 23 working days of receiving it.
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) RTA.
[The landlord/s] were and are aware of their obligations with respect to bonds, therefore I find that this was an intentional unlawful act.
In considering the tenants’ application for exemplary damages, as discussed at the hearing, I take into account the following: a. I accept [The landlord’s representative]’s submission that their use of the funds was in an effort to assist the tenants and he had understood he had their agreement to do so. b. [The landlord’s representative] has apologised to the tenants for any misunderstanding or inconvenience this situation has created for them. c. [The landlord/s] worked throughout this tenancy to assist the tenants to retain their tenancy despite their failure to pay rent and this action was to that end. d. The effect of the failure was to contribute to the distrust the tenants had of [The landlord/s] and their practices. e. It has not been easy for the tenants to bring their action to the Tribunal however they felt they had to, to redress the failure. f. The tenants have not suffered financially because of the failure. g. The administration practices of [The landlord/s] at the time were certainly lacking. h. [The landlord’s representative] agrees to pay $500 exemplary damages on the basis that their communications could have been clearer. i. The public interest in ensuring that bonds, being tenant monies, are held by an independent body.
Taking into account all of the above, I am satisfied that the offer of $500 exemplary damages is appropriate in the circumstances.
Because [The tenant/s] have wholly succeeded with the claim I must reimburse the filing fee.
Because this order is made in part by consent, I consider it appropriate pursuant to section 95A of the RTA to suppress all party identifying information.

Tenancy Tribunal case 4838500 — Exemplary damages

At a glance

Tenancy Tribunal case 4838500 — Exemplary damages

At a glance

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions