Was the decision to decline to declare that the termination notice had no effect not fair and equitable and/or against the weight of evidence?
- The primary challenge to this decision raises a question of statutory construction and has been dealt with above. We will proceed to deal with the Steinbecks' secondary submission, namely that the decision was not fair and equitable and/or against the weight of evidence. Given the significant overlap in the submissions made by the Steinbecks, for convenience we deal with these grounds together.
- The Tribunal approached the question of whether to declare the termination notice to have no effect by first asking whether the impugned notice was a "retaliatory notice". For convenience, we repeat below the relevant part s 115(2):
(2) The Tribunal may find that a termination notice is a retaliatory notice … if it is satisfied that the landlord was wholly or partly motivated to give the notice … for any of the following reasons:
(a) the tenant had applied or proposed to apply to the Tribunal for an order,
(b) the tenant had taken or proposed to take any other action to enforce a right of the tenant under the residential tenancy agreement, this Act or any other law,
(c) an order of the Tribunal was in force in relation to the landlord and tenant.
- The Tribunal noted that the Steinbecks had previously applied to NCAT for an order to "set aside" a notice of termination:
To the extent that the landlord was motivated by the fact that his previous notice was unsuccessful, the Tribunal finds that the grounds in paragraph 115(2)(a) are partly made out.
- The Tribunal went on to consider whether the notice was a retaliatory notice within the meaning of paras (b) and (c) of s 115. The Tribunal found:
• Mr McDonald to be a "witness of truth"
• Mr McDonald was "in the dark" about the repairs the Steinbecks were agitating for in their application to the Tribunal
• throughout the tenancy the Steinbecks made complaints about repairs and "perceived breach of peace comfort and privacy"
• those complaints have generally been responded to "although not always to satisfaction of the tenants"
• Mr McDonald had apparently attempted to balance the interests of the Steinbecks and the tenants who occupied the granny flat.
- The Tribunal concluded that neither paragraphs (b) or (c) were "made out".
- The Tribunal went on to consider the evidence about the future of the tenancy and accepted Mr McDonald's testimony that:
• he had "plans for the property", which included undertaking "several repairs"
• it was his intention to undertake this work himself
• in his estimate, the repairs would take a lengthy period to complete given that he intended to undertake the work himself and his practice of working slowly
• Mr McDonald's desire to undertake renovations and repairs was his "true motivation" for seeking the return of the property.
- The Tribunal found:
• despite their claims to the contrary it was unlikely that the Steinbecks could endure "a long, slow and disruptive schedule"
• the parties are "at an impasse of sorts"
• while this continues Mr McDonald is unable to re-let the granny flat and is losing rent
both parties are stressed by the current situation.
- In declining to exercise the power conferred by s 115, the Tribunal concluded (at pp 4,5):
ln exercising the discretion under section 115 the Tribunal is to balance the competing rights of the landlord and tenant. lt is also clear that if unsuccessful the landlord will again issue a further notice immediately. He put his position plainly, "I just want my house back. I have been waiting 241 days". This is his right under the Act and the only remedy available to him in the circumstances in the absence of breach by the tenants to return the properly is a notice under section 85. The parties are at an impasse of sorts. While this continues the landlord is not in a position to re-let the granny flat, resulting in a loss of income of $220.00 per week and also is unwilling to take action to enforce a rental increase to the tenants notified in accordance with the provisions of the Act. The evidence is that the rent is currently under market.
The tenants are stressed by the current situation as is the landlord. There is also evidence in the medical reports of Dr Duncan Dew dated 21 October 2O14 and 5 November 2014 that the landlord is suffering extreme anxiety and this is having an adverse consequence for his health and his ability to operate his business.
…
This is not a tenancy where the evidence demonstrates that for the duration the landlord has acted oppressively or sought to circumvent the rights of the tenants.
Although there is a history of Tribunal proceedings between the parties the Tribunal is not satisfied that it is appropriate to make orders to declare the notice of termination has no effect or refuse to make a termination order as at some time the landlord should be entitled to exercise their right to issue a notice of termination for no grounds and seek return of the property.