Published tribunal order
Tenancy Tribunal case 5222951 — Exemplary damages at 30 Suffolk Street, Phillipstown, Christchurch 8011
Decided 29 May 2025 · Published 29 May 2025 · Application 5222951
- 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’s name and identifying details.
- Jason Daniel must pay [the tenant] $3,027.00 immediately, calculated as shown in the table below.
- The tenant’s claims are otherwise dismissed.
Reasons
- Both parties attended the hearing.
- The tenant claims the bond and compensation and exemplary damages for breach of the landlord’s obligations relating to the bond and the tenancy agreement and the landlord’s obligations in relation to the condition of the premises including breach of Healthy Homes Standards. Background
- This tenancy began in October 2023 and ended in April 2025.
- The landlord is a property developer, and he bought the premises in 2023 with a view to developing the site. That project is now going ahead.
- The parties knew each other prior to this tenancy and after making some improvements to the premises, the landlord rented them to the tenant.
- The landlord has not made an application, but the parties agree that there are rent arrears to $1,050. The tenant said that after the landlord failed to complete some work that he had promised to complete, she withheld $50 rent per week for 21 weeks. I have therefore awarded the rent arrears to the landlord. Tenant’s Claims Bond
- Subject to the landlord’s entitlement to recover the rent arrears, the tenant is entitled to the bond.
- The landlord has not lodged the bond with the Bond Centre.
- A landlord must send any bond payment to the Bond Centre within 23 working days after the payment is received.
- Breaching this obligation is an unlawful act for which the Tribunal may award exemplary damages up to a maximum of $1,500.00.
- 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.
- Plainly, the landlord has been in breach of his obligations in relation to the bond. He said that he was not aware of the requirement to lodge it.
- The obligation is important because it is the tenant’s money, and the tenant is entitled to have the security of having it held by the Bond Centre. The landlord should have been aware of the obligation. It is well known. There is reference to it in the notes that come with the tenancy agreement that the landlord used.
- An award of exemplary damages is required in this case. Landlords must be aware that failure to lodge the bond will have consequences and that claiming ignorance is a poor excuse. An award of $500 is appropriate. The Tenancy Agreement
- A landlord must ensure that the tenancy agreement is in writing, signed and a copy provided to the tenant prior to the tenancy commencing.
- The agreement must contain statements regarding compliance with the Healthy Homes Standards and information regarding insurance of the premises.
- Breaching any of these obligations is an unlawful act, for which the Tribunal may award exemplary damages up to a maximum of $750.00.
- The landlord said that he provided a copy of the tenancy agreement to the tenant. She denied that.
- I can’t resolve that issue on the evidence, but there is no doubt that the landlord failed to provide both a healthy homes statement and insurance information. These are important. The healthy homes statement gives the tenant some assurance and it turns the landlord’s mind to the requirement. The insurance statement informs the tenant of their potential liability for careless damage to the premises.
- I find that there should be an award of exemplary damages for these failures, and I have awarded $350. Condition of the Premises
- Section 45 of the Residential Tenancies Act 1986 requires the landlord to maintain the premises in a reasonable state of repair and to comply with relevant healthy homes standards.
- 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 $7,200.00.
- The tenant has not provided any hard evidence that the premises did not comply with the healthy homes standards. In the messages, the landlord questions whether the heat pump is sufficient for the premises, but that is not proof that it wasn’t. This claim therefore fails for lack of proof.
- I accept that the landlord promised to complete some work to the premises. There is some support for it in the messages and the photographs show the bathroom flooring, for example, unfinished. The tenant was also promised a dishwasher and larger council bins. Only the smallest bins were provided.
- For the landlord’s failure to complete these things the tenant is entitled to compensation. I have awarded $1,000 which is slightly over $10 per week for the duration of the tenancy.
- The tenant has had significant success and so I have awarded her the filing fee. I have also granted her name suppression. Result
- The result is that the landlord must pay the tenant $3,027 including the bond and after setting off the rent arrears.