Published tribunal order
Tenancy Tribunal case 5014189 — Exemplary damages at Room 16, 343 Great South Road, Papakura, Papakura
Decided 11 Dec 2024 · Published 11 Dec 2024 · Application 5014189
- Exemplary damages
Party names are redacted in the official published order.
Order
- An application for suppression has been made in this case, and the Tribunal orders suppression of the tenant name and identifying details.
- Rajesh Sunita Ripul Sachdeva is to pay the bond money of $2,000.00 to [The tenant/s] immediately.
- Rajesh Sunita Ripul Sachdeva must pay [The tenant/s] $377.00 immediately as shown in the table below:
Reasons
- Both parties attended the hearing by remote teleconference.
- The tenant has applied for refund of the bond. The landlord may have a claim against the bond but has not filed a counterclaim with Tenancy Services.
- The landlord confirmed during the hearing that he had not lodged the bond with the bond centre as required. As at the hearing date the bond was still yet to be lodged. The landlord explained that the tenant started missing rent payments which was the reason he held the bond back. During the hearing the parties raised unsubstantiated allegations against each other which had no relevance to the issue at hand.
- The tenant provided a letter from Work and Income New Zealand (“WINZ”) confirming that the bond of $2,000.00 was paid to the landlord by them on 22 July 2024.
- Section 22B(2) Residential Tenancies Act 1986 provides that, where a tenant applies for refund of the bond, and the landlord seeks payment from the bond, the landlord must file an application setting out the details of the counterclaim. Because the landlord has not filed a counterclaim the bond is refunded in full to the tenant.
- [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.
- 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.
- I am satisfied that the landlord has breached their obligations because the bond was not lodged within 23 working days “after the payment was made”. The bond money does not belong to the landlord, there was no right for them to hold 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) Residential Tenancies Act 1986.
- I consider exemplary damages should be ordered for these reasons: i. I consider it likely the failure to lodge the bond was intentional. The landlord should have been well aware of his obligations to lodge the bond following the payment being made. ii. The effect for the tenant is that his bond was not secure in the Bond Centre. iii. There is a strong interest for landlords, tenants and the public generally that the bond system be robust, and of course that means landlords lodging tenants bond money as they are required to do. iv. It would be just to make an order.
- The maximum level of exemplary damages for failing to lodge the bond is $1500.00. For reasons as set out above, I order exemplary damages of $350.00 to be paid to the tenant.
- Because [The applicant/s] has wholly succeeded with the claim I must reimburse the filing fee.
- The Tribunal must, on the application of a party that has wholly or substantially succeeded in proceedings, order that the party’s name or identifying particulars not be published, unless the Tribunal considers that publication is in the public interest or is justified because of the party’s conduct or any other circumstances of the case – section 95A Residential Tenancies Act
- The tenant applied for a name suppression order. The tenant is entitled to name suppression as the application is successful.