What was the outcome of Tenancy Tribunal case 4750171?

The tribunal order states: Karen Holten is to pay Michael Kenneth Cudby and Lianne Angusina Knox

How much money was awarded in case 4750171?

Property Damage: $1,500.00 awarded to landlord; Power Bill Rebate: $250.00 awarded to landlord; Property Damage: $150.00 awarded to landlord

What type of tenancy dispute was case 4750171?

The primary dispute was Exemplary damages. Related themes: Property damage.

Where can I read the official tribunal order for case 4750171?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10356797-Tenancy_Tribunal_Order.pdf.

What was the outcome of Tenancy Tribunal case 4750171?

The tribunal order states: Karen Holten is to pay Michael Kenneth Cudby and Lianne Angusina Knox

How much money was awarded in case 4750171?

Property Damage: $1,500.00 awarded to landlord; Power Bill Rebate: $250.00 awarded to landlord; Property Damage: $150.00 awarded to landlord

What type of tenancy dispute was case 4750171?

The primary dispute was Exemplary damages. Related themes: Property damage.

Where can I read the official tribunal order for case 4750171?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10356797-Tenancy_Tribunal_Order.pdf.

22 Bedford Crescent, Matamata, Matamata 3400 Tenancy Tribunal Case 4750171 — Exemplary damages

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Order

Claims and awards in Tenancy Tribunal application 4750171. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Power bill rebate	$250.00	Power bill rebate
Damaged bike muffler	$150.00	Damaged bike muffler
Income loss due to wrongful terminationNIL Relocation costsNIL Exemplary damages for unlawful termination	$1,500.00	Income loss due to wrongful terminationNIL Relocation costsNIL Exemplary damages for unlawful termination

Karen Holten is to pay Michael Kenneth Cudby and Lianne Angusina Knox (Cudby) $1,900.00 immediately, calculated as follows: DescriptionLandlord Power bill rebate$250.00 Damaged bike muffler$150.00 Income loss due to wrongful terminationNIL Relocation costsNIL Exemplary damages for unlawful termination$1,500.00 Total award$1,900.00

Reasons

Both parties attended the hearing.

The Tenant claims compensation for a $1,000 power bill, $700 for property damage due to a leaking shed, $10,000 for income loss, and relocation costs, alleging wrongful termination of the tenancy, late bond lodgement, an unauthorised rent increase, and unauthorised entry by the Landlord.

The Landlord claims rent in lieu of notice. Power bill

The Tenant is seeking a $250.00 rebate of the $1,000.00 power bill it paid.

The tenant is responsible for all outgoings in respect of the premises that are exclusively attributable to the tenant’s occupation of the premises or to the tenant’s use of the facilities: s 39 of the Residential Tenancies Act 1986 (the Act).

The Tenant claims and the Landlord accepts the Tenants and their neighbours shared power on a single metre.

The parties agreed a payment arrangement for power, but each party has different views of how to attribute power consumption between the tenancies, leading to disagreement.

I consider $250.00 (25%) is reasonable, having regard to the $100/month contribution to power by one tenant compared to the higher overall usage indicated by power invoices, which show average monthly charges significantly exceeding this amount. Damaged items

I have concluded that the shed was leaking and has damaged the tools. I have no evidence as to their condition or value prior to the tenancy. Post-hearing, the Tenant has sent evidence to establish the value of the damaged bike muffler. I have considered that, if they were so valuable, and susceptible to the elements, why were they not stored in weatherproof storage? I consider the parties should share the risk. I award $150.00 to the Tenant for the damaged bike muffler, seeing its second-hand value as $300.00. Termination without grounds

The Tenant claims that the Landlord has breached their obligations under section 60AA.

Under s 60AA a landlord must not give a 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 $6,500.00. See section 60AA and Schedule 1A Residential Tenancies Act 1986.

The landlord issued a notice on 11 December 2023 to terminate the Tenants’ tenancy, with the last day being 10 March 2024. The Landlord writes the termination is due to dishonesty and subletting a room without consent, resulting in reduced rent.

The landlord mentions a missed rent payment and concerns about the tenants’ ability to pay if their subtenant moves out.

The landlord also mentioned a forthcoming rental increase notice and requested the tenants to tidy up the carport and surrounding area.

The notice provided by the landlord does not comply with section 51 of the Residential Tenancies Act 1986 for the following reasons: a. Grounds for Termination: The reasons provided (dishonesty and subletting without consent) do not fall under the grounds specified in sections 51(1) or 51(2), which include reasons such as requiring the premises for personal use, selling the premises, extensive repairs, or demolition. The grounds given by the landlord do not meet any of these criteria. b. Notice Period: While the notice provides more than 90 days' notice (from 11 December 2023 to 10 March 2024), it is not given on any of the valid grounds listed in the Act. c. Content of Notice: The notice is in writing, identifies the premises, specifies the termination date, and is signed by the landlord, which complies with section 51(3). However, as mentioned, the reasons for termination are not aligned with the permissible grounds under the Act.

In summary, the notice does not comply with section 51 of the Residential Tenancies Act 1986 because the reasons for termination are not valid under the grounds specified in the Act.

I find they the Landlord has committed an unlawful act.

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 the notice was intentionally given.

I consider the effect of the notice on the tenants was considerable. They had to relocate themselves and their belongings, in a tight rental market, which was unsettling.

I consider that while the Landlord may have believed she had a genuine grievance with the Tenants. However, this did not justify giving notice to end the tenancy.

The Landlord has since employed a property manager which is positive.

The Tenant, Mr Cudby, says he lost his temper with the Landlord, on account of her manner towards him and Ms Cudby, accusing them of lying.

The disagreement was unfortunate and the termination of the tenancy avoidable.

I have regard to the relative power imbalance between tenants and landlord, which is evident in this case.

I consider the Landlord’s action as significantly serious. I award $1,500.00 in exemplary damages.

The Landlord’s claim for rent in lieu of notice must also fail, as it would be unequitable to award the Landlord compensation for lost rent in the circumstances where it had given a defective notice to end the tenancy without proper grounds, causing the Tenant significant worry and distress: s 85 Residential Tenancies Act 1986

In terms of the Tenant’s loss of income and relocation cost claims, I consider the Tenants have not established their claims, and the losses claimed would be too remote in any event.

There has been no request for me to release the bond and, if the bond is still lodged, the parties are to cooperate to ensure its timely release.

Order

Claims and awards in Tenancy Tribunal application 4750171. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Power bill rebate	$250.00	Power bill rebate
Damaged bike muffler	$150.00	Damaged bike muffler
Income loss due to wrongful terminationNIL Relocation costsNIL Exemplary damages for unlawful termination	$1,500.00	Income loss due to wrongful terminationNIL Relocation costsNIL Exemplary damages for unlawful termination