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[2017] ACAT 72
ACT Civil and Administrative Tribunal
2017-09-19
Original judgment source is linked above.
TANKARD & ANOR v OGBONNA & ANOR (Residential Tenancies) [2017] ACAT 72
Catchwords: RESIDENTIAL TENANCIES - tenant rights and obligations to correct defects after final inspection - lessor onus of proof to prove breach and damage - tenant onus of proof to prove exception for fair wear and tear - ambit of fair wear and tear in kitchens and laundries - tenant's liability for damage resulting from a failure to address consequences of fair wear and tear - damage to appliances - tenant obligation to pay for water used to maintain a garden - claims made after final inspection
Legislation cited: Residential Tenancies Act 1997 s 83; standard terms 46, 63, 64, 75
Cases cited: Alamdo Holdings Pty Ltd v Australian Window Furnishings (NSW) Ltd [2004] NSWSC 487
Alamdo Holdings Pty Ltd v Australian Window Furnishings (NSW) Ltd [2006] NSWCA 224
Dean v Singh [2017] ACAT 61
Edwards v Izzard [2016] ACAT 91
Hlubucek v Sinodinos; Sinodinos v Hlubucek [2007] ACTRTT 12
JSM Management Pty Ltd v QBE Insurance (Australia) Limited [2011] VSC 339
Maroney v Bullard [2016] ACAT 33
Martins v Zhang [2014] ACAT 48
Regis Property Co Ltd v Dudley [1959] AC 370
TC Industrial Plant Pty Ltd v Robert's Queensland Pty Ltd [1963] HCA 57; (1963) 180 CLR 130
Texts/Papers cited Anforth, Christensen and Bentwood, Residential Tenancies Law and Practice, New South Wales (6th edition)
Date of Reasons for Decision: 19 September 2017
(a) in substantially the same state of cleanliness, removing all the tenant's belongings and any other goods brought onto the premises during the duration of the tenancy agreement; and
(b) in substantially the same condition as the premises were in at the commencement of the tenancy agreement, fair wear and tear excepted.
The tenant is responsible for all charges associated with the consumption of services supplied to the premises, including electricity, gas, water and telephone.
Wear and tear. In the context of leases, the phrase wear and tear - a 'reduplicative phrase', as linguists call it - includes not only the action of weather but also the normal use of property. A tenant is not liable to replace a carpet that becomes dingy from normal use during the tenancy - but a spilled bottle of black ink is another matter.
If any repairs or maintenance are required throughout the tenancy, it is to be at the tenant's expense. If the fridge requires replacement, this is too at the tenant's expense.
Damage to skirting boards and cabinetry in kitchen area
...is not free simply to stand by and see the demised premises reduced to rack and ruin by the compounded effects of normal wear and tear - that there is a point at which the tenant must step in and put an end to the downwards slide.
The exception of want to repair due to wear and tear must be construed as limited to what is directly due to wear and tear, reasonable conduct on the part of the tenant being assumed. It does not mean that if there is a defect originally proceeding from reasonable wear and tear the tenant is released from his obligation to keep in good repair and condition everything which it may be possible to trace ultimately to that defect. He is bound to do such repairs as may be required to prevent the consequences flowing originally from wear and tear from producing others which wear and tear would not directly 'produce'.
For example, if a tile falls off the roof, the tenant is not liable for the immediate consequences; but, if he does nothing and in the result more and more water gets in, the roof and walls decay and ultimately the top floor, or the whole house, becomes uninhabitable, he cannot say that it is due to reasonable wear and tear, and that therefore he is not liable under his obligation to keep the house in good repair and condition.
If any want of repair is alleged and proved in fact, it lies on the tenant to show that it comes within the exception.
... if a tenant has in some respect not complied with clause 64, the lessor must take all reasonable steps to mitigate the loss caused by the breach. The lessor cannot recover damages for any loss which the lessor could have avoided but failed, through unreasonable action or inaction, to avoid. So, for example, if there are areas which are not in substantially the same state of cleanliness or not substantially in the same condition as at the time of the commencement of the lease, the lessor must mitigate their loss by giving the tenant a reasonable opportunity to correct the breach.
What is a "reasonable opportunity" will depend on the facts in each case such as whether a new tenant has been secured and, if so, when the new tenancy is to commence; whether the tenant allegedly in breach of clause 64 is willing and able to rectify the alleged breach; and the timeframe within which the tenant proposes (and is able) to correct the breach. There may be other factors.
... it would in my view be unreasonable for a lessor not to give the tenant a reasonable opportunity to correct the breach and instead to incur the expense of engaging contractors to correct the breach and then seek to recover those expenses from the tenant. A lessor might choose to engage contractors rather than deal with the tenant, but such costs in my view could not be recovered from a tenant if the tenant was not first given a reasonable opportunity to correct the breach in the tenant's own manner or at the tenant's own cost.
I accept ... that an oversight in an inspection may be capable of being remedied a short time later. Additional latitude may, and should, be given where there was damage that was not capable of being identified by a visual inspection. However, the final inspection report should be considered the starting point for any assessment of damage. It is usually not appropriate to allow compensation for damage identified after the outgoing report is complete unless the damage was not reasonably capable of identification during the final inspection or unless there is clear evidence that establishes that the damage was caused by the tenant. Obviously, the longer the time between the end of the tenancy and the identification of the damage, the harder it will be for a lessor to meet this evidentiary burden.[14]
[1] The Standard Residential Tenancy Terms are set out in Schedule 1 to the Residential Tenancies Act 1997
[2] Anforth, Christensen and Bentwood, Residential Tenancies Law and Practice, New South Wales (6th edition) at [2.187.13]
[3] [2016] ACAT 33 at [21] - [31]
[5] [2004] NSWSC 487 at [56] - [57]. The decision was upheld on appeal in Alamdo Holdings Pty Ltd v Australian Window Furnishings (NSW) Ltd and Anor [2006] NSWCA 224
[7] This conclusion is consistent with my findings in Maroney v Bullard [2016] ACAT 33 at [31] - [33]
[8] Dean v Singh [2017] ACAT 61 at [9], [10]
[9] TC Industrial Plant Pty Ltd v Robert's Queensland Pty Ltd [1963] HCA 57; (1963) 180 CLR 130, 138
[10] Dean v Singh [2017] ACAT 61 at [11]
[11] [2016] ACAT 91 at [56] - [61]
[13] [2014] ACAT 48 at [9] - [11]
TANKARD & ANOR
OGBONNA & ANOR
(1963) 180 CLR 130