Published tribunal order
Tenancy Tribunal case 5414489 — Exemplary damages at 40A Rising Parade, Fairview Heights, Auckland 0632
Published 6 May 2026 · Application 5414489
Tenant favoured
- Exemplary damages
Order
- Song Tao is to pay Shang Yi Wu, Chiao Shih Chu $2,748.00, per the table below, immediately.
Reasons
- The tenants attended the hearing, set down to be conducted via video conference. There was no entry into the conference by the landlord, nor any call in to the conference by one of the telephone numbers provided on the Notice of Hearing. I was satisfied adequate service had completed and I continued with the hearing.
- The tenants have applied for refund of the bond and exemplary damages for failure to lodge the bond.
- The landlord has not filed a counterclaim with Tenancy Services.
Should the bond be returned?
- 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.
Did the landlord fail to lodge the bond?
- Shang Yi Wu and Chiao Shih Chu 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.
- A landlord must send any bond payment to the Bond Centre within 23 working days after the payment is received (see s 19(1) Residential Tenancies Act 1986). This applies whether the bond is paid in part or whole.
- There is no record of a bond at the Bond Centre for this tenancy.
- Breaching this obligation is an unlawful act for which the Tribunal may award exemplary damages up to a maximum of $1,500.00 (see s 19(2) and Schedule 1A RTA.
- 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).
- A bond is the tenants’ money and must be lodged with the Bond Centre within the statutory time limit to protect the tenants’ interests. Lodging a bond is not a conditional obligation but a mandatory one and it is in the public interest that landlords fulfil their obligations under the Act. If no penalty is imposed there can be no deterrent.
- The failure to lodge the bond must be intentional for exemplary damages to be awarded. Therefore, damages will not be awarded where non-lodgement is a genuine oversight, rather than an intentional act (Chief Executive for Housing New Zealand v Walls [1993] NZTT Auckland 548/92).
- However, the Tribunal may draw an inference of intent where the landlord claims to have simply forgotten, as a landlord should have systems in place to ensure this does not happen. Exemplary damages have been awarded where: the landlord has no explanation for the non-lodgement and has other tenancies (Jones v Ying [2001] NZTT Auckland 2783/01); the landlord is experienced (Hart v Allen Realty Ltd [2003] NZTT Auckland 2183/02); and where the landlord knew of the obligation from the bond form signed by the tenant (Fu v Florendo [2013] DC Manukau, CIV-2013-092-2373).
- The landlord has their name recorded in previous bond lodgements, but with an agent acting. Given there is no apparent history of prior failures to lodge the bond I have awarded $500.00 exemplary damages, being at the lower end, but recognising the parties prior discussion and promises regarding the return of the bond, as well as the public interest in ensuring the bond lodgement process is adhered to. Filing fee
- Because Shang Yi Wu, Chiao Shih Chu has wholly succeeded with the claim I must reimburse the filing fee. Translated Information The Tenancy Services website has a dedicated section for Simplified Chinese (简体中文) and Traditional Chinese (繁體中文) resources.