Disputes Tribunal of New Zealand

Consumer law / Consumer Guarantees Act 1993 / Applicant paid Respondent $6,900 to restore roofing and apply paint system at the Applicant's house / Respondent only took a few hours to complete job / There were leaks and remedial work needed / Applicant claimed $19,309.97 in damages / Held: Respondent's restoration work was not done with reasonable care and skill nor fit for the purpose / Failure was of substantial character / No consequential losses proven but Applicant entitled to refund / Respondent ordered to pay Applicant $6,900 / Claim allowed in part.

Negligence / Respondent failed to stop at stop sign and collided with Applicant’s vehicle and trailer / Applicant claimed compensation for trailer damage and associated losses / Applicant believed trailer should have been valued at $18975 by Respondent’s insurer / Held: Respondent liable for reasonably foreseeable loss / Referee accepted Applicant had made improvements to trailer but rejected claim for cost of new trailer as it would place Applicant in better position than before accident / Valuer assessed trailer at $5,000 based on photos but acknowledged upgrades could add $2,000–$3,000 / Referee determined fair value at $8,000 inclusive of GST / Appellant already received $5000 leaving $3,000 outstanding / Referee added $460 as Respondent’s insurer agreed they would pay for wood pellets, trailer hire and storage / Respondent ordered to pay Applicant $3,460.00 / Claim allowed in part.

Contract / Consumer Guarantees Act 1993 (CGA) / Applicant's vehicle broke down and was taken to Respondent for repairs / Respondent invoiced $1,670.41 for various repair services / Applicant requested a breakdown of labour costs but received no response / Applicant's father paid invoice to recover vehicle from Respondent / Applicant claimed Respondent unsatisfactorily carried out repair work to vehicle, carried unauthorised repairs and took an unreasonable time to complete work / Held: Respondent breached CGA when it replaced the sensors without consultation with Applicant / Respondent breached its obligation to carry out services within a reasonable time / Respondent ordered to pay Applicant $997.13 / Claim allowed in part.

Contract law / Respondent engaged applicant under a sole agency agreement to sell its property and business / The sole agency was to run until 20 April 2024, after which it would convert to a general agency unless cancelled with one month’s written notice / On 31 January 2024, respondent emailed applicant requesting listing be withdrawn / Applicant confirmed the withdrawal on 2 February 2024 / The property was later sold privately / Applicant claimed $30,000 commission arguing the sale was made to a party introduced during the agency period / Held: the agency agreement was mutually cancelled on 2 February 2024 / Sale occurred months after the cancellation and was initiated independently by the buyer / Applicant was not the effective cause of the sale and did not meet the contractual conditions for commission under the agreement / Claim dismissed.

Contract / Real estate / Respondent entered into a sole agency agreement with Applicant for the sale of two properties / One property was sold through Applicant / Respondent privately sold second property / Applicant claimed $21,337.57 in commission based on a 2.15% GST rate in the agency agreement / Held: agency agreement was valid for 90 days / Private sale occurred during the agency period or within six months of cancellation / Purchaser was introduced by Applicant, commission was therefore payable to Applicant as per the agreement / Respondent ordered to pay Applicant $21,337.57 / Claim allowed.

Contract / Insurance / Applicants made an insurance claim to Respondent for damage resulting from cyclone / Respondent approved $18,846.21 / Applicant claimed $29,999 to repair 6m of the 20m retaining wall / Held: parties are only bound to comply with terms of agreement under contract law / Respondent only required to pay sum required to repair retaining wall to the condition it was in immediately before the loss / Claim dismissed.

Contract law / Applicants and Respondent entered a flat lease agreement / Respondent left flat after advising work circumstances had changed and stopped paying rent / Applicants remained jointly and severally liable under lease for full rent so had to cover Respondent’s rent share / New tenant not secured until three months after Respondent moved out / Applicants claimed $3667.42 as amount of rent they had covered for Respondent / Respondent accepted liability for rent but argued obligation to pay ceased when barred from returning to flat by Applicants / Held: Respondent breached agreement and remained liable until replacement tenant found / Respondent gave assurances he would rent arrears but made no payments after moving out / Applicants had valid reasons to refuse Respondent’s return including safety concerns / Replacement tenant found through Applicants’ efforts / Amount of rent arrears confirmed by property manager and accepted by Respondent / Respondent ordered to pay Applicants …

Incorporated Societies / Jurisdiction / Disputes Tribunal Act 1988 / Incorporated Societies Act 2022 / Respondent terminated Applicant’s membership / Applicant alleged termination breached contractual relationship under Respondent’s constitution and rules / Applicant sought reinstatement of membership and $9,000 in damages / Held: Tribunal had no jurisdiction to hear claim / Respondent’s constitution and rules did not constitute a contract /  / Damages for intangible harm such as distress or humiliation usually not awarded by Tribunal / Claim stuck out.  

Contract / Contract and Commercial Law Act 2017 / Applicants paid $18,000 deposit to Respondents for house relocation / Applicant asked Respondent before entering contract about timing of relocation / Respondent said end of February or start of March / Applicants cancelled contract on 4 March as house not relocated / Applicants claimed $22,578 for refund of deposit plus related fees / Respondents counterclaimed $30,000 for wasted expenditure / Held: Applicants wrongfully repudiated contract / No misrepresentation or breach by Respondents not relocating house by March / Respondent’s timing of relocation was estimate and not term of contract / Clause requiring forfeiture of deposit if purchaser cancels contract was unenforceable as penalty / Tribunal granted partial relief from forfeiture / Respondents ordered to refund Applicants $5,000 / Claim and counterclaim allowed in part.

Fencing / Fencing Act 1978 / Contract and Commercial Law Act 2017 (CCLA) / Applicants issued notice to Respondent for replacement of a shared fence, Respondent denied receiving notice / Applicants claimed $4,067.66 for fence costs / Held: notice validly served via email under CCLA as parties had previously communicated electronically / Respondent received email and failed to issue cross-notice or objection within 21 days so deemed to have accepted proposal under the FA / Notice met the FA requirements including boundary, scope, cost, and consequences / Respondent ordered to pay Applicants $2,900 as half of fence costs / Claim allowed.  

Consumer law / Consumer Guarantees Act 1993 (CGA) / Applicant purchased a rooftop tent from Respondent / Tent was used a few times before Applicant noticed cracks in the plastic shell, deteriorating waterproofing and damage to interior lining / Applicant contacted respondent and returned the tent to them at his own cost / Respondent applied sealant to the waterproofing and claimed other issues were due to wear and tear / At the hearing, Respondent acknowledged the cracks were likely manufacturing fault and offered a replacement tent which Applicant declined due to loss of trust / Applicant claimed $2,903.75 / Held: Tent was not of acceptable quality under the CGA due to cracks, waterproofing failure and poor durability / Respondent failed to remedy defects within a reasonable time / Applicant entitled to reject goods and receive a full refund / Respondent ordered to pay applicant $2,903.75 / Claim allowed in full.

Contract / Flatmate agreement / Contract and Commercial Law Act 2017 (CCLA) / Applicant signed flatmate agreement with Respondent as head tenant and paid $1790 for bond and rent / Respondent gave notice to vacate tenancy before agreement commenced / Applicant cancelled agreement but Respondent refused to return amounts paid / Applicant claimed $1790 / Held: Respondent’s early termination breached implied essential term and Applicant would not have entered agreement if aware of imminent termination / Breach substantially reduced benefit and increased burden of contract on Applicant / Respondent’s offer to transfer lease no defence as it imposed substantially different obligations on Applicant / Tribunal held Applicant’s cancellation justified under s 36 or s 37 CCLA / Respondent ordered to pay Applicant $1260 as balance of amount not returned to Applicant.

Contract / Consumer Guarantees Act 1993 / Applicant agreed to paint Respondent's house for $6,325 / Respondent changed paint colour selection and Applicant charged $1,547.90 extra / Contract required use of scaffolding and Respondent said parts of roof could not be walked on / Respondent paid $2,300 / Applicant claimed $5,572.90 unpaid balance / Respondent counterclaimed $4,999 for various damages and costs / Held: Applicant's claimed balance is payable under contract, subject to findings in Respondent's counterclaim / No sufficient evidence provided by Respondent to the extent of damage to the outdoor table and roof tiles / No tangible evidence to show any quality issues with Applicant's job / Applicant liable to reduce invoice by $500 for roof damages, $200 for table damages, $400 for touch-up work / Respondent ordered to pay Applicant $4,472.90 / Claim allowed in part / Counterclaim allowed in part.