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[2009] VCAT 2748
plaintiff. The Tribunal found the landlord had not complied with its 17 September 2008 order and ordered it to pay the tenant $196; the remaining compensation claims were refused.
The Tribunal had previously ordered the Director of Housing to take all reasonable steps to protect J McC's quiet enjoyment. It later found the Director had not done enough after receiving further information about problems with her neighbour. The Tribunal accepted that repeated excessive car noise significantly interfered with her enjoyment, but did not accept all of her other allegations as breaches. It awarded $196 for the established 14-week period of excessive noise, rejecting the other claimed amounts.
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J McC and AF lived in neighbouring units rented from the Director of Housing. The judgment records that they had both been tenants there for many years and that conflict between them had continued for about twelve years. The Director had offered J McC alternative accommodation four times between 2004 and 2007. She said she did not accept those offers because the properties were unsuitable.
On 17 September 2008, VCAT made an order after J McC sought a compliance order. It found that she had given the landlord a breach of duty notice under s 208 of the Residential Tenancies Act 1997 alleging breach of s 67, and ordered the landlord to take “all reasonable steps to ensure that the tenant has quiet enjoyment of the rented premises at all times”. The order also required the landlord to refrain from a similar breach. It adjourned the proceeding to a date no later than 18 September 2009 and permitted renewal, with a compensation claim for non-compliance.
The later proceeding concerned whether the Director had complied with that order. The Tribunal accepted J McC's evidence that she contacted the Director approximately five or six weeks after the order about problems including noise from AF's car. It was not disputed that no further action was taken in response. The Director also received a letter from J McC dated 3 June 2009, which described alleged conduct by AF and asked that the information be put on her file. The Director filed the letter and sent an acknowledgement but did not contact her to clarify it.
J McC provided notes of incidents between July and October 2009. Her complaints included noise from an aviary and car, alleged swearing and gestures, floodlights, laughter and police visits. The Tribunal preferred her account of events over AF's denials, while distinguishing between events it accepted and her interpretation of them. It found repeated excessive noise from AF's car to be a breach of quiet enjoyment. It did not find the bird noise, lights or other alleged harassment to be established breaches.
The order records that the landlord had not complied with the earlier order and required payment of $196. The Tribunal calculated this as $14 per week for 14 weeks, from 3 July to 10 October 2009.
The central question was not simply whether the Director caused the interference itself. It was whether the landlord had fulfilled the specific obligation imposed by the earlier VCAT order. The Tribunal framed the test as whether the Director had taken all reasonable steps to ensure quiet enjoyment. It referred to the approach set out in Mr S v Director of Housing (Residential Tenancies) [2009] VCAT 2615: reasonableness is a matter of fact assessed in all the circumstances, objectively, and a useful question is what steps the Director could have taken but did not take.
The Tribunal identified the history as important context. The Director knew the tenants had experienced an extended conflict and had offered alternative accommodation before the compliance order. The Member considered it foreseeable that further difficulties might arise. The Director's knowledge did not make every later allegation true, but it informed what response could reasonably be expected after the order.
The accepted contact in October or November 2008 was significant. J McC said she reported ongoing issues, including noise, and that an officer had responded about the noise as a police matter. The Director's file contained no record of the contact. The Tribunal nevertheless accepted that it occurred, relying on J McC's detailed evidence and corroboration from her advocate that an officer had spoken with her. The Director did not seek an adjournment to call the officer. The judgment says no further action was taken after the complaint.
The June 2009 letter was a separate reason for finding the response inadequate. The Tribunal acknowledged that its listed allegations appeared, on their face, tangential to the tenancy and that it asked only for the information to be placed on file. But the known history and the distress conveyed in the letter made a literal response inadequate. In the Member's view, a telephone call to clarify whether the incidents, or other events, were being raised as interference with quiet enjoyment was a reasonable step. Merely filing the letter and acknowledging it by mail did not satisfy the order in those circumstances.
The Tribunal then examined what interference had actually occurred. It regarded quiet enjoyment as more than an absolute promise that a tenant would never experience noise or annoyance. The interference had to be unreasonable or significant and more than mere inconvenience. It rejected the aviary noise as a breach because council had inspected it in 2007 and taken no action, and there was no evidence that it had increased after September 2008. It considered the use of lights reasonable. It also found insufficient evidence that the police visits, laughter, swearing or other alleged conduct amounted to significant interference by AF.
By contrast, the Tribunal accepted that there had been numerous incidents of excessive car noise. J McC had detailed notes, an independent witness corroborated an incident of loud music and engine revving, and the Tribunal was not materially persuaded that the witness evidence had been damaged in cross-examination. On that basis, it found the noise sufficiently significant to breach quiet enjoyment.
Finally, the Tribunal separated proof of non-compliance from the amount of compensation. It rejected most claimed expenses because their connection with the Director's failure was insufficiently established. It did, however, allow a modest rental-based amount for the proven period of significant and regular noise.
The judgment dealt with a particular compliance order, rather than deciding a general application about compliance with a statutory duty provision. It expressly cautioned that its analysis concerned the landlord's obligation to comply with this Tribunal order. The order's wording, especially “all reasonable steps” and “to ensure”, was central to the result.
Before this decision, the text of the order had already placed a positive obligation on the Director. The Tribunal used earlier authorities to explain how to assess reasonable steps and landlord responsibility when one tenant's conduct interferes with another tenant. It referred to Reardon v Ministry of Housing, where the Victorian Supreme Court discussed the landlord's obligation under a predecessor provision when it knew of third-party interference and could act. It also discussed Department of Housing v Consumer, Trader and Tenancy Tribunal and Anor, a New South Wales decision concerning different statutory language, including “permit any interference”. Those authorities formed part of the reasoning context, but the Member's decision rested on the specific terms of the VCAT order and the facts before the Tribunal.
The judgment's stated approach after the decision is correspondingly narrow. It shows that, in this case, an order to take all reasonable steps was not met by passive file management when the landlord knew of a persistent dispute and received information potentially indicating further interference. It also shows that “quiet enjoyment” did not mean freedom from every annoyance: the Tribunal required unreasonable or significant interference beyond inconvenience. The decision does not establish that every complaint requires the same response or that a landlord is responsible for every neighbour dispute. Its reasoning tied the required response to the history, notice, evidence, and particular order.
The award also illustrates that a finding of non-compliance did not make every claimed expense recoverable. The Tribunal assessed the link between each amount and the breach. It rejected expenses it considered attributable to broader or longer-term distress, application costs, or anxiety not sufficiently sheeted home to the Director's non-compliance. Compensation was confined to a period and form of disruption the Tribunal found proved.
The operative order required “all reasonable steps to ensure that the tenant has quiet enjoyment of the rented premises at all times”. In plain English, the landlord had to do more than avoid personally disturbing the tenant. It had to take reasonable steps, in the circumstances, to secure the quiet enjoyment specified by the order.
The Tribunal described reasonable steps as an objective, factual inquiry and asked what the Director could have done but did not do. This approach prevents the landlord's own view of its response from being the only measure. The history and information available to it mattered.
The Member said quiet enjoyment was not an absolute term and required interference that was “unreasonable or significant in some way and more than inconvenience”. In practical terms, ordinary neighbour noise or annoyance was not enough by itself. The Tribunal applied that distinction by rejecting the aviary noise and lights as breaches, while accepting repeated excessive car noise.
The judgment emphasised that the order said “all” reasonable steps, not “some” or “various”. That observation underscores the particular strength of the order's language. The finding did not mean that a landlord must guarantee a perfect result in every situation; the decision considered whether the steps taken were reasonable in the circumstances and found the Director's limited response insufficient.
For compensation, the Tribunal said it would assess 10 per cent of rent, or $14 a week, for the 14 weeks covered by the notes, from 3 July to 10 October 2009. The arithmetic produced $196. This was an assessment tied to the proven excessive-noise period, not an allowance of all the financial and personal consequences J McC claimed.
The reasoning is most relevant where a tenant relies on a specific Tribunal order requiring a landlord to take all reasonable steps to protect quiet enjoyment, and then alleges the landlord did not respond adequately to further interference. Facts resembling those in this judgment include a landlord's awareness of an established conflict, a prior compliance order, a further complaint after the order, and a response limited to recording or acknowledging the complaint without investigating or clarifying it.
The case also provides an example of how evidence of interference may be assessed. J McC's contemporaneous notes and some independent corroboration supported her account of excessive vehicle noise. Conversely, the Tribunal did not infer that every unpleasant event was harassment or a breach. It distinguished between the occurrence of an event and the tenant's interpretation of its purpose or significance.
The decision may also be relevant where a claim includes several types of interference. It did not treat all allegations as one undifferentiated course of conduct. It separately considered the aviary, car noise, lights, police visits and other alleged behaviour, applying the significance threshold to each category and the evidence available.
Its limits matter. This was not a general ruling on every landlord's obligations in every tenancy dispute. The Member expressly distinguished an application concerning the landlord's statutory duty from the proceeding about compliance with this particular order. The particular order's language, the landlord's knowledge and the evidence of repeated noise were important features of the result.
The supplied judgment does not refer to decisions made after 17 December 2009 or describe any subsequent treatment of McC v Director of Housing. On the material provided, it is not possible to say whether later courts or tribunals followed, distinguished, approved or criticised this decision. The decision itself refers to Mr S v Director of Housing (Residential Tenancies) [2009] VCAT 2615 on the assessment of reasonable steps, and discusses Reardon v Ministry of Housing and Department of Housing v Consumer, Trader and Tenancy Tribunal and Anor in relation to landlord knowledge and action. Those are authorities considered by this Tribunal, not evidence of later treatment of McC.
The reasons do not prescribe a fixed response that a landlord must take whenever a tenant complains. They do not specify an exhaustive list of “reasonable steps”, nor set a general procedural standard for investigating complaints. The result instead turns on the Director's known history with these tenants, the terms of the order, the accepted report of further noise and the lack of substantive follow-up.
The judgment also does not define a numerical threshold for when noise becomes unreasonable or significant. It found the particular repeated car noise to qualify, while finding the aviary noise and lights did not. The decision therefore leaves the assessment dependent on the nature, frequency, evidence and context of the interference.
A further question is how far the result would extend to orders with different wording. The Member relied expressly on “all reasonable steps” and “to ensure”, and stated that the analysis concerned compliance with an order rather than a direct statutory-duty application. The reasons do not determine whether the same responsibility would arise under differently worded orders or on a different evidentiary record.
Finally, the compensation reasoning does not provide a general formula for valuing loss of quiet enjoyment. The 10 per cent rental assessment was applied to the identified 14-week period in this case. The reasons do not set out a universal percentage or establish that other claims, including distress or related expenditure, would be treated the same way on different facts.
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Compliance order - whether all reasonable steps taken to ensure tenant's quiet enjoyment of the rented premises - compensation for breach of order.
CITATION McC v Director of Housing (Residential Tenancies)
The Tribunal finds that the landlord has not complied with the order of the Tribunal
The Tribunal orders the landlord to now pay the tenant the sum of $196.
The tenant gave the landlord a breach of duty notice under section 208 of the Residential Tenancies Act 1997 alleging a breach of section 67 and was entitled to do so.
1. The landlord must remedy the breach as specified:
It must take all reasonable steps to ensure that the tenant has quiet enjoyment of the rented premises at all times.
2. The landlord must refrain from committing a similar breach
3. The proceeding is adjourned to a date no later than 18 September 2009 to be heard by any Member of the Victorian Civil and Administrative Tribunal.
4. The proceeding may be renewed by the tenant giving the principal registrar notice in writing but if the proceeding is not renewed on or before this date it shall be considered withdrawn.
5. If the proceeding is renewed the application is amended to seek compensation for non-compliance of this order and the tenant is directed to provide full particulars of such compensation to the landlord and to the Tribunal.
After 12 year exhausting years of trying to manage/defend myself against the onslaught of breachable behaviour by the OOH tenants that share this property with me including making several false allegations to your department. I would like to take this opportunity to advise you that I now have concrete evidence in regard to:
The reason I am providing you with this information is that I would like you to make sure this is put on my file.
All reasonable steps have been determined to be a matter of fact after, taking
into account all of the circumstances (Re Taylor v Commonwealth of Australia (1988) 15 ALD 393 at para 33.) and must be considered objectively rather than just through the eyes of the parties,( Department of Health v Multichem Laboratories Ltd [1987] 1 NZLR 334.) A useful consideration is, what steps could the Director have taken, but did not take?( AA v Ron Tribe & Associates Pty Ltd [2008] VCAT 586).
The alleged interference with the tenant's quiet enjoyment
Is the interference a breach of quiet enjoyment?
The landlord's obligation to ensure quiet enjoyment
In my view, s92 extends the obligation of the landlord by requiring the landlord to take reasonable steps to ensure that the quiet enjoyment of the tenant is not disrupted when the landlord has notice of a third party disrupting or intending to disrupt a tenant's quiet enjoyment and could take action to stop it. The language of the section departs significantly from that of the usual covenant. In addition, while the section substantially re-enacts CL129(1) of the 1978 Bill it leaves out the concluding words - "without interruption by the landlord". This supports the view that the present section was not intended to be limited to interference with a tenant's quiet enjoyment by the landlord or his or her agent. The words in their natural meaning do not suggest such a limitation" page 11
31. The reasons for the tribunal's decision detail precisely how the Department was aware of the incidents occurring between its tenants. Departmental file notes, records of complaints, and police records complete the picture the Department had of the threats received by Mr and Mrs Ingram as well as the actual disturbances to their peace and safety. In these circumstances, in my opinion, the tribunal was entitled to find that the failure to take any active steps to prevent the commission of further breaches amounts to an implied license to the disturbing tenants.
32 The Department must be taken to have known that if it failed to take action the breaches of Mr Ingram's rights as a tenant would continue. Accordingly, even if the tribunal's findings that the failure to take an action in the tribunal amounted to a breach were wrong, nevertheless the knowledge that the breaches would continue meant that the Department did permit further breaches of s22 of the Act.
33 Taking no active step to remedy the situation after taking cognisance of the likelihood of further breaches is, in my opinion, sufficient for it to have been open to the tribunal to find that liability for the breaches could attach to the Department.
McC
Director of Housing
The Tribunal found the landlord had not complied with its 17 September 2008 order and ordered it to pay the tenant $196; the remaining compensation claims were refused.