Decision of the Tribunal at first instance and relevant legislative provisions
- The originating application was lodged by NSW Housing under the Residential Tenancies Act 2010 (NSW) (the RTA). NSW Housing sought a termination order under s 91 of the RTA.
- Section 91 provides,
91 Use of premises for illegal purposes
(1) The Tribunal may, on application by a landlord, make a termination order if it is satisfied that the tenant, or any person who although not a tenant is occupying or jointly occupying the residential premises, has intentionally or recklessly caused or permitted:
(a) the use of the residential premises or any property adjoining or adjacent to the premises (including any property that is available for use by the tenant in common with others) for the purposes of the manufacture, sale, cultivation or supply of any prohibited drug within the meaning of the Drug Misuse and Trafficking Act 1985 , or
(b) the use of the residential premises for any other unlawful purpose and that the use is sufficient to justify the termination.
(2) In considering whether to make a termination order on the ground specified in subsection (1) (b), the Tribunal may consider (but is not limited to considering) the following:
(a) the nature of the unlawful use,
(b) any previous unlawful uses,
(c) the previous history of the tenancy.
(3) The termination order may specify that the order for possession takes effect immediately.
(4) A landlord may make an application under this section without giving the tenant a termination notice.
(5) The Tribunal may make a termination order under this section that takes effect before the end of the fixed term if the residential tenancy agreement is a fixed term agreement.
- Ms Simpson entered into a residential tenancy agreement in respect of the premises on 7 August 2009. At the time of the proceedings, she lived with her partner, Mr Jason Napper, and three year old twins.
- On 7 November 2014, NSW Housing filed an application seeking an order for termination of the residential tenancy agreement. According to the reasons for decision, NSW Housing sought to rely on a NSW Police brief of evidence in criminal proceedings before the Local Court. Ms Simpson was charged with various offences on 19 November 2014 and on 1 June 2015 she was convicted of two offences of supplying a prohibited drug. She was also convicted of two offences of possession of a prohibited drug.
- The Tribunal was satisfied on the evidence before it that Ms Simpson had used or caused or permitted the premises to be used for the purposes of the sale or supply the prohibited drug within the meaning of the drug misuse and trafficking act 1985. The Tribunal noted that Ms Simpson denied the breach, however, was satisfied of the following (at [10]) based on the evidence before it:
1. Ms Simpson had been convicted of two offences of supply prohibited drug in the Campbelltown Local Court; and
2. A drug analysis report was been provided to indicate the drugs found on the premises fall within the meaning of a "prohibited drug" is set out in the Drug Misuse and Trafficking Act 1985 and includes cannabis and methamphetamine.
- Ms Simpson denied supplying drugs from the premises and stated that the cannabis found the premises was that the personal use of her partner. She denied all knowledge of the amphetamines found in the premises.
- The Tribunal relied on a fact sheet in the NSW Police Brief which was provided to the Tribunal in respect of the two offences. The Tribunal recorded extracts from the fact sheet in the reasons for decision as follows:
The accused has previously been convicted of drug possession 2013. She has shown no remorse for her actions and police believe that the accused will continue to supply prohibited dugs to the community if she is granted the liberty of bail…
In July 2014 the police were conducting an investigation into a person known as 'KMO' and as a result of that investigation police were lawfully monitoring the mobile phone numbers belonging to KMO. During the period of the telephone intercept warrant, the accused Amy Simpson received and made numerous phone calls and text message utilising her mobile phone number xxxxxxxxx to the mobile phone number of KMO.
Through the monitoring of these phone calls, it became apparent that the accused Amy Simpson was operating a business from her home address at XXXXX Ambervale whereby she would supply numerous persons with the prohibited drug Cannabis Leaf. During conversations between Amy Simpson and KMO, conversations would often take place discussing the specifics such as weight, price and availability. On most occasions KMO would come to the accused at her home whereby she would supply KMO with prohibited drugs.
Offence 7: Supply Prohibited Drug at 9.18am on Friday 8 August 2014 a call was intercepted between the accused and KMO. During this call Simpson discusses supplying an unknown male named Brendan with a Q, a twenty and a tenna. Police believe this directly refers to the supply of 7 grams of Cannabis leaf, 1 gram of Cannabis Leaf and 0.5 grams of Cannabis Leaf. During the conversation, the accused states her price for a Q (Quarter of an ounce) is $90.00. These terms are commonly used for various amounts of cannabis supply which is consistent with the pricing…
On Thursday 28 August 2014, Campbelltown detectives from the Drug Investigation Unit with the assistance of uniformed police from Bass Hill RES executed a search at that location…upon searching the kitchen ,police located a small resealable satchel bag placed on top of a set of scales…A further small resealable satchel bag was located underneath the kitchen bench top... Both of these satchel bags contained a thick yellow coloured past suspected of being Amphetamine. The two satchel bags containing the thick yellow past substance had a combined weight of 1.7 grams.
The accused was questioned in relation to the suspected Amphetamine, scales and drug paraphernalia located in the kitchen however she declined to answer…
Whilst completing the search in the kitchen, police located several items of drug paraphernalia including glass [pipes sued for smoking crystal methyl amphetamine, empty small plastic satchel bags of the same variety as other prohibited drugs had been located within… …"
- NSW Housing also provided a statement of a client services officer which set out the neighbourhood profile of Ambarvale as well as other matters pertaining to Ms Simpson's ability to find alternate housing in the area.
- In exercising its discretion under s 91(1) of the RTA, the Tribunal noted at [12] that, while not mandatory, it was relevant to consider the factors set out in both sections 87 and 152 of the RTA in relation to termination for breach of a residential tenancy agreement.
- It is therefore convenient to set out those provisions which were addressed by the Tribunal at [14] to [20] of the reasons for decision.
- Section 87 of the RTA provides:
Breach of agreement
(1) A landlord may give a termination notice on the ground that the tenant has breached the residential tenancy agreement.
(2) The termination notice must specify a termination date that is not earlier than 14 days after the day on which the notice is given.
(3) The termination notice may specify a termination date that is before the end of the fixed term of the residential tenancy agreement if it is a fixed term agreement.
(4) The Tribunal may, on application by a landlord, make a termination order if it is satisfied that:
(a) the tenant has breached the residential tenancy agreement, and
(b) the breach is, in the circumstances of the case, sufficient to justify termination of the agreement, and
(c) the termination notice was given in accordance with this section and the tenant has not vacated the premises as required by the notice.
(5) In considering the circumstances of the case, the Tribunal may consider (but is not limited to considering) the following:
(a) the nature of the breach,
(b) any previous breaches,
(c) any steps taken by the tenant to remedy the breach,
(d) any steps taken by the landlord about the breach,
(e) the previous history of the tenancy.
(6) The Tribunal may refuse to make a termination order if it is satisfied that the tenant has remedied the breach.
- Section 152 provides:
Termination by Tribunal of social housing tenancy agreements for breach
(1) In determining whether to terminate a social housing tenancy agreement on the ground of a breach by the tenant, the Tribunal is to have regard to such of the following matters as may be relevant:
(a) any serious adverse effects the tenancy has had on neighbouring residents or other persons,
(b) whether any breach of the agreement was a serious one, and whether, given the behaviour or likely behaviour of the tenant, a failure to terminate the agreement would subject, or continue to subject, neighbouring residents or any persons or property to unreasonable risk,
(c) the landlord's responsibility to its other tenants,
(d) whether the tenant, wilfully or otherwise, is or has been in breach of an order of the Tribunal,
(e) the history of the tenancy concerned, including any prior tenancy of the tenant arising under a social housing tenancy agreement.
(2) This section does not limit any other matters that may be considered by the Tribunal under any other provision of this Act.
- In summary, the Tribunal found:
1. The two convictions for the supply of prohibited drugs is a serious matter. The surrounding neighbourhood has a mixture of private and public housing tenancy and ownership and a mixture of single people and families residing in the area. There was a child-care centre within 600 metres of the property. Using premises or allowing the premises to be used supply prohibited drugs would have serious adverse effects on neighbouring residents. While the Tribunal accepted Ms Simpson may have a good relationship with her neighbours this did not diminish the impact that supplying a prohibited drug may have on the neighbourhood (at [14] to [16]).
2. Using the premises for an illegal purpose was a serious breach of the residential tenancy agreement. The fact Ms Simpson denied the offence, despite her convictions, indicates that a failure to terminate the agreement would subject or continue to subject neighbouring residents to unreasonable risk (at [17]).
3. There was no evidence Ms Simpson had been in breach of an order of the Tribunal (at [18]).
4. This there was nothing adverse known to the Tribunal regarding Ms Simpson's prior history in this tenancy or any other social housing tenancy (at [20]).
5. The Tribunal considered the evidence provided Ms Simpson and accepted that she had resided in the premises since 2009, otherwise had a good record as a tenant and resided with her partner, who was legally blind, and twin children aged three. The Tribunal also accepted that Ms Simpson did volunteer work in the area and that the children were enrolled in the local child-care centre. The Tribunal noted that there was no evidence provided that a move from the premises would have an adverse medical effect on her partner. The Tribunal was also not satisfied that termination of the tenancy would cause Ms Simpson any serious adverse effect in continuing with her volunteer work or that she would be unable to find alternative private housing in the area. Ms Simpson had previously had 10 months to obtain any evidence of these matters and there had been numerous adjournments (at [22] and [23]).
- Relevantly, the Tribunal concluded at [24]:
In the Tribunal's view the seriousness of the breach outweighs the tenant's otherwise good record as a tenant and her personal circumstances, including her children's established relationships in the area, her own personal circumstances and her partner's medical condition.
- The Tribunal further stated, at [27] and [28]:
27 The Tribunal is satisfied the breach may have serious adverse effects on neighbouring residents or other persons. The Tribunal is satisfied that the tenant has intentionally or recklessly caused or permitted the supply of two prohibited drugs on the premises.
28 The Tribunal finds on balance that the seriousness of the breach, the lack of a remorse shown by the tenant in continuing to deny the offence, even after having pleaded guilty to 2 offences, the effect the crimes may have on neighbouring tenants and other persons justify termination of the tenant tenancy.
- Ms Simpson was given two months to vacate the premises and the order for possession was delayed until 30 November 2015.