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[2016] ACAT 102
ACT Civil and Administrative Tribunal
2016-09-02
Original judgment source is linked above.
MATHEW & ANOR v BARRANCO (Residential Tenancies) [2016] ACAT 102
Catchwords: RESIDENTIAL TENANCIES- internal flooding - whether premises were fit for habitation - question of fact - rent abatement - reimbursement of tenants' alternative hotel accommodation costs - early termination of lease where premises not fit for habitation - interest up to date of decision
Legislation Cited: ACT Civil and Administrative Tribunal Act 2008 s 22
Residential Tenancies Act 1997 Schedule 1, clauses 86 and 87
Subordinate
Legislation cited: Court Procedure Rules 2006 rr 1619, 1620, schedule 2
Cases Cited: Finn v Finato [2004] NSWCTTT 179
Kerr v Czeizler [1998] NSWRT 185
Re: John Costello and Citra Constructions Ltd [1990] FCA 9
Seaman and Tyne v Seerey [2010] NSWCTTT 376
Sinclair c Candylios [1993] NSWRT 144
Winder v Grehan [2013] NSWCTTT 247
The carpet cleaner only turned up at 7:30pm to do the survey. He would return tomorrow to dry up the carpets.
We have moved to a hotel, but looks like this may take more than a couple of days to sort out.
Attended site, found majority of the house to have severe amount of water damage throughout the ground floor gyprock roof and upstairs carpet caused by a faulty mini stop to the upstairs toilet. Replaced for a new quarter turn mini stop.
Believe this is a (sic) unsafe environment for the tenants to be living at this time until works are completed.
Supply and install new ceilings sheets to lounge area
Wonder if you could please advise us as to the status of the repairs. I shall be sending you the receipts for the hotel accommodations shortly. It is turning into a huge expense, and we are keen to see the repairs done as soon as possible so we can return home.
I sent through approval for Syrus to start work asap, he is going to call you asap to book in the job for Monday morning. Once the plasterboard is up you can move back in, you can organise that directly with a handyman. We will be going through body corporate insurance to claim all of this damage so you may not have reimbursement for a couple of weeks but I will try and get it sorted asap for you.
We would like to inform that we would be moving out of the property on 14th October (Wednesday).
We hope the landlord is agreeable to this and, if so, please advise us on the cleaning requirements and other end of lease formalities.
Thankyou for letting me know, the owner will be getting back to me on Monday as to whether he accepts your short notice term.
Please let us know the landlord's position. Lis tells me that you had told her it was fine for us to move out at short notice.
I haven't received a response to the below email, so I have attached it here.
We have completed moving out of the property and have cleaned the house and the pool except where the wires are dangling under the broken ceiling.
Thankyou for your updated emails. I was unexpectedly away from the office from Monday - Wednesday so I have not been able to follow this up today.
Can you please advise if the work has started on the ceiling yet? It was suppose (sic) to start on Monday that I have not heard from the tradesperson yet.
The owner has advised me that he will not be accepting your short notice period to vacate the property and terminate the tenancy as of yesterday. He requires the standard 21 days notice to vacate, meaning your final day would be Friday 30th October and you will need to pay rent up to this day.
Can you please advise when you would like me to conduct your final inspection? You can still have access to the property for the rest of the month but no later than 30/10/15.
We will be claiming your hotel expenses on the insurance as I have previously mentioned to you. It should not take too long for a decision to be made with the insurance company however I cannot submit the claim until the ceiling is completed and I have the invoice.
Thankyou. I am aware of what the Act says in relation to vacating and unfit for habitation. The owner is not willing to confirm anything until we know what his insurances will cover.
Please note that you will not be given any rent money back from when you were at the hotel unless you would prefer to be reimbursed rent rather than the hotel cost? You are only entitled to one not both. As mentioned, the owner will not be reimbursing you any cost until we know more about his insurance.
The property should be completely cleaned and grounds cleaned for your final inspection, please see attached the final inspection cleaning guide. Please note that the owner can also charge rent while you have keys and access to the property so if you have already finished all of the cleaning I would recommend to drop the keys into me asap.
The owner is liable to pay us for providing us with emergency accommodation in lieu of the rent he has charged us for the period from when the house got flooded till the time we vacated having given notice as per our contract on the 14th of October, 2015. We demand that this amount be reimbursed to us immediately.
reimbursement of excess rental paid from 14 October onward - $1334.41
We have waited more than two months for the owner to be able to sort out his insurance, but as there has been no effort on his part to reimburse our money, we are compelled to give this notice. The owner must pay us get reimbursed by insurance. You wouldn't have liked it if we have refused to pay the rent.
If the owner does not pay us the money within 20 days ie 14th of December 2015, we would be compelled to apply to the ACAT. If this were to happen, the owner would be liable to pay us the above amount plus the ACAT fees, plus interest at the rate of 8% from when we started incurring expenses as well as subsistence expenditure.
Please understand that this would (sic) our last and final notice before we take this to the tribunal.
The lessor's submissions on appropriate compensation
"If the state of the repair of the house is such that by ordinary user damage may naturally be caused to the occupier either in respect of personal injury to life or limb or injury to health, then the house is not in all respect fit for habitation..... it is clear that premises may be unfit for human habitation even though it is physically possible for a tenant to reside in the premises."
"must both import such a state as to repair that the premises might be used and dwelt in, not only for safety , but for reasonable comfort, by the class of persons by whom and for the sort of purpose for which, they were to be occupied.....(emphasis added)
The conclusion I draw... is that the landlord is obliged to hand the premise over to the tenant, at the commencement of the lease, in a reasonable state of repair having regard to its age, rent payable and the prospective life of the premises, and the state of the repair must at least meet the minimum standard inherent in the contemporary understanding of the term "fit for habitation". .... .(emphasis added)
You could still walk through the living area. You can still stand in the living area. You just don't have any electricity and no ceiling.[7]
Once the ceiling was done, it was noted that the floorboards were badly damaged then. So it ended up we had to replace the floors as well in the living area.[8]
Believe this is a (sic) unsafe environment for the tenants to be living at this time until works are completed.
If neither the lessor or the tenant give notice of termination of the tenancy, the rent abates for the period that the premises are unable to be used for habitation, but the tenancy resumes when they are able to be used again.
We will be going through body corporate insurance to claim all of this damage so you may not have reimbursement for a couple of weeks
[1] Re: John Costello and Citra Constructions Ltd [1990] FCA 9 at [30]
[2] Transcript of proceedings 5 April 2016, page 15
[4] Seaman and Tyne v Seerey [2010] NSWCTTT 376; Kerr v Czeizler [1998] NSWRT 185
[5] Winder v Grehan (2013) NSWCTTT 247 at [37] - [40]
[6] Sinclair c Candylios [1993] NSWRT 144
[7] Transcript of proceedings 5 April 2016, page 27
[8] Transcript of proceedings 5 April 2016, page 12
[9] Transcript of proceedings 5 April 2016, page 18
[10] Transcript of proceedings 5 April 2016, page 22
[11] Transcript of proceedings 5 April 2016, page 5
[12] The Tribunal refers, for example, to Dr Mathew's email sent on 7 October 2015
[13] Transcript of proceedings 5 April 2016, page 37
MATHEW & ANOR
BARRANCO