What was the outcome of Tenancy Tribunal case 4966773?

The tribunal order states: Klavs Limited Greg Klavs must pay Jocelyn Jacobs $1,017.00 immediately.

How much money was awarded in case 4966773?

Property Damage: $350.00 awarded to tenant; Filing Fee: $27.00 awarded to tenant

What type of tenancy dispute was case 4966773?

The primary dispute was Exemplary damages.

Where can I read the official tribunal order for case 4966773?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/11359989-Tenancy_Tribunal_Order.pdf.

What was the outcome of Tenancy Tribunal case 4966773?

The tribunal order states: Klavs Limited Greg Klavs must pay Jocelyn Jacobs $1,017.00 immediately.

How much money was awarded in case 4966773?

Property Damage: $350.00 awarded to tenant; Filing Fee: $27.00 awarded to tenant

What type of tenancy dispute was case 4966773?

The primary dispute was Exemplary damages.

Where can I read the official tribunal order for case 4966773?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/11359989-Tenancy_Tribunal_Order.pdf.

66 Graham Road, Inner Kaiti, Gisborne 4010 Tenancy Tribunal Case 4966773 — Exemplary damages

Reasons

Claims and awards in Tenancy Tribunal application 4966773 — net $1,017.00 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Tenant	Reason
Filing fee reimbursement	$27.00	Filing fee reimbursement
Exemplary damages: Failure to lodge bond	$350.00	Failure to lodge bond
Balance of bond money to tenant	$640.00	Balance of bond money to tenant
Net award	$1,017.00
Total payable by Landlord to Tenant	$1,017.00

Both parties attended the hearing.

The tenant has applied for refund of the bond. The landlord has a claim against the bond but has not filed a counterclaim with Tenancy Services.

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.

Jocelyn Jacobs claims the landlord has not lodged the bond with the Bond Centre within the required time.

The tenant says that she paid the bond in full at the time she moved into the property. The tenant says that she has received half of the bond back. This was refunded to her on or about 26 August 2024.

The landlord confirmed during the hearing that the bond was not lodged. He says that it was an honest mistake and that it was his wife who was looking after the administration. It was his belief that she had lodged the bond. The landlord stated that only half the bond was returned was because of the state of the property at the end of the tenancy.

Credit must be given to the landlord nevertheless for accepting responsibility for this during the hearing.

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.

The landlord failed to lodge the bond. I find they have 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 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.

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 would have been aware of their obligations to lodge the bond following the payment being made. The tenant resided at the property for nearly 4 years and at some stage the landlord would have realised that the bond had not been lodged. ii. The effect for the tenant is that her 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 the amount of $350.00 be paid to the tenant in the form of exemplary damages.

The tenant confirmed during the hearing that she discontinues her remaining claims relating to Healthy Home Standards.

I also acknowledge the evidence provided by the landlord at the start of the hearing.

Because Jocelyn Jacobs has substantially succeeded with the claim I have reimbursed the filing fee.

Claims and awards in Tenancy Tribunal application 4966773 — net $1,017.00 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Tenant	Reason
Filing fee reimbursement	$27.00	Filing fee reimbursement
Exemplary damages: Failure to lodge bond	$350.00	Failure to lodge bond
Balance of bond money to tenant	$640.00	Balance of bond money to tenant
Net award	$1,017.00
Total payable by Landlord to Tenant	$1,017.00

Order

Klavs Limited Greg Klavs must pay Jocelyn Jacobs $1,017.00 immediately.

Reasons

Both parties attended the hearing.
The tenant has applied for refund of the bond. The landlord has a claim against the bond but has not filed a counterclaim with Tenancy Services.
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.
Jocelyn Jacobs claims the landlord has not lodged the bond with the Bond Centre within the required time.
The tenant says that she paid the bond in full at the time she moved into the property. The tenant says that she has received half of the bond back. This was refunded to her on or about 26 August 2024.
The landlord confirmed during the hearing that the bond was not lodged. He says that it was an honest mistake and that it was his wife who was looking after the administration. It was his belief that she had lodged the bond. The landlord stated that only half the bond was returned was because of the state of the property at the end of the tenancy.
Credit must be given to the landlord nevertheless for accepting responsibility for this during the hearing.
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.
The landlord failed to lodge the bond. I find they have 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 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.
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 would have been aware of their obligations to lodge the bond following the payment being made. The tenant resided at the property for nearly 4 years and at some stage the landlord would have realised that the bond had not been lodged. ii. The effect for the tenant is that her 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 the amount of $350.00 be paid to the tenant in the form of exemplary damages.
The tenant confirmed during the hearing that she discontinues her remaining claims relating to Healthy Home Standards.
I also acknowledge the evidence provided by the landlord at the start of the hearing.
Because Jocelyn Jacobs has substantially succeeded with the claim I have reimbursed the filing fee.

Tenancy Tribunal case 4966773 — Exemplary damages at 66 Graham Road, Inner Kaiti, Gisborne 4010

At a glance

Tenancy Tribunal case 4966773 — Exemplary damages at 66 Graham Road, Inner Kaiti, Gisborne 4010

At a glance

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Property management

Frequently asked questions

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Property management

Frequently asked questions