Disputes Tribunal of New Zealand

Contract law / Contract and Commercial Law Act 2017 (CCLA) / Applicants purchased racehorse from Respondent for $22,500, intending to use the horse for equestrian events / Shortly after purchase, horse exhibited behavioural issues / Veterinary investigations shows horse had congenital condition known as Kissing Spine / Applicants claimed refund of $22,500 plus $4,890.13 in associated costs / Held: Respondent made an innocent misrepresentation by stating the horse was suitable for eventing, which induced Applicants into contract / Horse not suitable for eventing / Although respondent unaware of the congenital condition, the misrepresentation entitled the Applicants to compensation / Under CCLA the Applicants could not cancel the contract but were entitled to compensation for their losses / Respondent ordered to pay Applicants $27,390 / Claim allowed.

Contract / Applicants contracted Respondent to photograph their wedding / Contract provided for album, online gallery, video highlight, physical prints / Applicants received online gallery containing duplicate photos from only part of wedding / Applicants did not receive video or other physical items in contract / Applicants claimed $3800 as refund / Held: Respondent breached contract by failing to provide agreed albums, prints, video highlight and other items outlined in contract / Respondent also breached term relating to online gallery as photos did not accurately represent entirety of day / Applicants entitled to be put back into position they would have been in if contract was performed / Respondent to provide Applicants all unedited photos and video footage and pay $1500 refund / Claim allowed.  

Contract law / Property / Respondent signed commission agreement appointing Applicant as sole agent to sell business / Applicant introduced Respondent to potential buyer who decided to not proceed with sale / Respondent cancelled listing of business months later / Respondent’s business sold four years later to company formed by the earlier potential buyer / Applicant claimed $30,000 commission from Respondent / Held: Respondent not liable to pay commission to Applicant as Applicant’s introduction was not effective cause of Respondent’s business sale / Purchaser not introduced by agent during agreement period and sale occurred over three years after agreement ended / Contact between agent and buyer after introduction was general and not causative of sale / Sale initiated independently by conversation between Applicant and employee of buyer’s company / Claim dismissed.  

Consumer law / Acceptable quality / Consumer Guarantees Act 1986 / Applicant purchased  mattress online for $549 plus $109 delivery / Applicant claimed $658 refund as mattress sagged on both sides after 3 months causing back pain and provided photos showing sagging / Respondent argued sagging due to expected foam compression, and said there was no defect as mattress low-priced, firmness subjective / Held: mattress not proven defective or below acceptable quality / Applicant’s photos unconvincing and price paid relevant to expectation of good’s performance / Applicant did not disclose mattress’ specific purpose or back condition to Respondent / Claim dismissed.

Contract / Consumers Guarantee Act 1993 “CGA” / Applicant hired Respondent to install steel roof, repair tiles on roof, supply and install new mains power supply, and the installation and ducting of new rangehood / Applicant claims refund for defects for all areas of work / Held: Goods are to be provided with reasonable skill and care / Respondent not liable for any issues regarding internal gutter and pitch /  Respondent to remove roof and refund Applicant / Concrete tiles are in reasonable condition and Applicant’s tile claim not made / Drip tray to be replaced / Claim allowed / Respondent to pay Applicant $8057.56.

Contract law / Applicants sold property to Respondents / Parties agreed to licence for Applicants to occupy for one day post-settlement and $3000 performance bond to be held / Respondents held bond beyond return date because Applicants failed to provide keys, working heater and tidy garden / Respondents also said Applicants had trespassed on property / Applicants claimed $3000 as return of bond / Respondents counterclaimed $12062.62 / Held: Applicants breached contract by failing to provide a working bathroom heater at settlement / Respondents entitled to $1119.64 for heater installation / Respondents could not prove trespass occurred / No breach regarding garden or vacant possession / Respondents not entitled to compensation for time off work or travel for Tribunal hearing / Respondents ordered to pay Applicants $1880.64 / Applicants ordered to pay Respondents $1119.64 / Claims accepted in part / Counterclaim accepted in part.

Consumer law / Consumer Guarantees Act 1993 / Respondent engaged Applicant to manufacture and install kitchen benchtops / Applicant carried out installation and issued invoice for unpaid balance / Respondent disputed invoice on grounds that she was not satisfied with installation / Applicant claimed payment for unpaid invoice / Held: minor issues identified by Applicant were remediable / Applicant had the right to remedy failure by carrying out repaired work / Applicant not given opportunity to remedy minor issues identified / Applicant failed to exercise reasonable care and skill in communicating with Respondent about the cooktop, fill and waterfall / Final product did not have the look that Respondent wanted to achieve / Respondent entitled to 25% compensation of total price / Respondent ordered to pay remaining invoice less compensation / Respondent ordered to pay Applicant $7,242.84 / Claim allowed in part.

Consumer law / Consumer Guarantees Act 1993 / Disputes Tribunal Act 1988 / Interest on Money Claims Act 2016 (IMCA) / Applicants purchased engineered oak floorboards from Respondents for $30879.56 / Applicants collected and stored floorboards for one year then had them varnished by a third party and installed by Respondent / Floorboards showed rippling and varnish issues / Applicants claimed $30,000 for replacement / Respondent counterclaimed $10,021.73 for unpaid invoice and interest / Applicants said floorboards not of acceptable quality and varnish not applied with reasonable care / Held: Floorboards were of acceptable quality but varnish had minor issues / ‘Telegraphing’ caused by moisture ingress likely occurred during storage by Applicants not prior to purchase / Storage container conditions and timing of damage supported finding water ingress occurred during Applicant’s storage / Varnish sheen was incorrect but insufficient evidence of inadequate thickness / Respondent offered t…

Consumer law / Consumer Guarantees Act 1993 / Applicant purchased computer components from Respondent / Applicant discovered a small amount of damage on the motherboard but proceeded to install it only to discover that it could not contact the processor chip / Applicant then contacted Respondent who declined to replace the motherboard as it had been installed and so it could not rule out that the damage had been caused by installation, rather than being present on delivery / Applicant claimed $299.00, being the price he paid for the motherboard / Held: was more likely than not that the Applicant received the motherboard in a damaged state / Failure was of substantial character / Applicant entitled to receive a full refund of the purchase price of $299.00 / Claim allowed.

Tort /  Disputes Tribunal Act 1988 / Parties were in a romantic relationship for 80 months / Applicant claimed the Respondent took money from a joint bank account without his knowledge / All funds deposited in the account came from the Applicant / Respondent counterclaimed for compensation for lost income and other costs related to stress and harassment from the breakdown of the relationship / Respondent also claimed $28,350 for the work she did looking after the Respondent during their relationship after he suffered an injury / Held: Tribunal only had jurisdiction of the claim based in tort related to property / Taking of money from a bank account a form of economic loss / Money not defined as property in the legislation / Lack of jurisdiction to hear the claim / Respondent did not counterclaim for damage or loss of property in stress and harassment related compensation so unsuccessful claim / Respondent unsuccessful in claim for payment for looking after Applicant after he suffered a…

Negligence / Applicant impacted Respondent's angus steers whilst driving / Applicant's vehicle was unrepairable / Applicant claimed $6,000 as estimated value of car pre-impact / Held: interference of an unknown third party most likely the reason for Respondent's gate being left open / Applicant did not provide evidence that the gate and fencing containing stock was of standard or quality insufficient for that purpose / Claim dismissed.

Consumer law / Fair Trading Act 1993 (FTA) / Applicant purchased house from Respondent with Second Respondent as estate agent / Applicant asked 2nd Respondent at open home about property boundary / 2nd Respondent said fence was on boundary with neighbouring property / Dispute arose with Neighbours after sale who informed Applicant that part of house encroached on their land / Neighbours told 2nd Respondent before sale about encroachment but vendor said issue resolved / Applicant claims $30,000 of legal, survey and council costs incurred in adjusting boundary through Court process / Held: 2nd Respondent's silence on potential encroachment was misrepresentation and therefore misleading conduct / 2nd Respondent did not take reasonable steps to resolve competing information about potential encroachment / Applicant had clearly asked about boundary and 2nd Respondent was silent despite professional standards creating positive duty to disclose and to avoid contravening ss 9 and 14 FTA / Appli…