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[2016] ACAT 95
ACT Civil and Administrative Tribunal
2016-08-19
Member Lennard, Member Daniel
Original judgment source is linked above.
I am aware of the intermittent issues that have been happening and have referred the problems as urgent to the owner as there is no building manager nor body corporate at this complex.
When tenants have reported issues with the lift or security access I have each and every time reported this to the owner for repair.
I am concerned with the ongoing issues with the security side of the building and have done everything in our power to arrange with the owner for someone to go out and repair the issue.
Even this morning I had a call from a security company asking for a key to the security box which I do not have nor ever had. I have referred this again to the owner to have this fixed today. I know this is of no consolation to you but just want you to understand the complexity of what I do have control over and what I don't.
I am sorry for the inconvenience to you and your plans over the Christmas break and can only hope that this is resolved quickly now that Christmas is over.
The owner has also decided to take the properties from our office (probably due to my insistence to have the matter urgently rectified) to another office but please keep me posted as to the outcome of the repair today.
I have spoken to Schindler, who appear not to have a current service agreement in place for this building. There is no elevator technician identified in the urgent repair list.
Can you please advise whether there is a current service agreement in place for the elevator, and if so who it is.
... I cannot help with the lift as I do not know who the current service agent is ... all I can do is refer this back to the owner as this is something he must attend to.
I do understand your frustration and I will refer the current issue with owner's sons who have authority to act on his behalf. They must understand that this is to be rectified today.
I completely understand the impossible situation you're in. I regret that it has come to this, however after two weeks its just intolerable.
Can you please mention in your communication with the landlord's representatives that if there is not a plan to engage a qualified elevator technician in place by COB tomorrow (notified to me), then I will exercise my right under clause 62(b) to engage a tradesperson of my own choosing to effect the repairs. While I know that I'm only authorised to engage up to 5% of our annual rent, I'm certain the other tenants would be willing to add their 5%'s also.
(5) the lessor be ordered to repair the lighting in the fire stairs;
- (6) the lessor be ordered to reimburse the tenant for the application fee for this application or that the tenant be authorised to offset the amount against the rent payment for the month of February; and
- (7) that a time limit for complying with these orders be set by the Tribunal.
I have spoken with Schindler regarding going out to fix the lift but they refuse to go out unless the owner signs a management agreement with them. I have forwarded the document from Schindler to the owner but he is already aware of this and still hasn't signed off on the agreement. He has had this paperwork since 2014 when the building was completed but to date Schindler still has not received it. Therefore my hands are tied because no other company will fix Schindler lifts.
The Tribunal notes: failure to comply with an order of the ACAT may be grounds for a penalty.
(2) By 12:00 noon on Thursday 28 January 2016 the lessor must have had the lift inspected by an authorised technician/repairer; and file with ACAT by that time a short written report from the technician/repairer explaining whether the lift is able to be used safely, or if not, confirming that it has been rendered safely unusable until such time as it can be repaired.
(3) The respondent's representative is to file with the Tribunal and give to the applicant a notice of contact details by 5:00pm Wednesday 27 January 2016.
(4) The matter is otherwise adjourned to 4:30pm Thursday 28 January 2016 for mention and further orders/directions.
In relation to the elevator, Mr Jurgen Hirsch (OTIS) was called to site to attend to the elevator in January 2016. He confirmed it was running without issue. He subsequently certified the safety of the lift (later on 28 January 2016). Since those attendances the lessor has had the opportunity to liaise with Schindler Lifts (the manufacturer). The lessor has also been able to obtain Schindler's maintenance contract. The lessor advises that Schindler have agreed to attend to the lift and restore it to working condition. While it is not expected that on-going repairs will be necessary, we will confirm as soon as we able as to the lift status after Schindler have attended the premises.
(a) Pursuant to order 1 of the Orders [dated 11 February 2016], on 17 February 2016 an email was sent to all tenants by the managing agent firm LJ Hooker Manuka which advised that the lift had been repaired and a service agreement entered.
(b) Pursuant to order 2 of the Orders, on 17 February 2016 LJ Hooker Manuka contacted tenants of [the premises] by email and provided the 24 hour contact telephone numbers for repairs to the lift. On 19 February 2016, a list of qualified tradespersons for the purpose of clause 62 of the prescribed terms was updated to include a nominated lift repairer who can conduct urgent repairs and provided to Mr Withers-Norris and other tenants.
Loss of use of the elevator, $24 a day for 88 days $2,112.00
Inoperative Security System, for 22 days at $27.14 a day
(being 40% of daily rent of $67.86) $ 597.08(sic)
Loss of amenity of storage shed from 22 December 2015,
112 days at $2.04 a day (being 3% of daily rent) $ 230.72
Intercom - 3% of weekly rent, $14.25, for 3 weeks $ 42.75
Cleanliness - 5% daily rent of $67.86 for 174 days $ 591.60(sic)
(1) The Respondent denies that any actions (or inactions) of the Respondent have resulted in any loss of the Applicant's use or enjoyment of the premises described as [the premises];
(2) The Respondent denies that the Applicant's use or enjoyment of the premises has been diminished as a result of the security system, the elevator, the internal storage shed, the intercom, the cleanliness, the fire stairs the Premises in part or at all; and
(3) The Respondent denies that the Respondent is indebted to the Applicant in the amount alleged or at all.
(b) Report from Jurgen Hirche dated 28 January 2016;
(c) Colour photographs dated 28 January 2016 in respect of the fire stairs;
(d) Report from JP Electric & Security dated 4 February 2016;
(e) Letter addressed to tenants at [the premises] dated 10 February 2016; and
(f) Letter addressed to ACAT dated 29 February 2016.
This tribunal and the former Residential Tenancies Tribunal have taken the approach that compensation should be awarded by way of rent reduction under section 71 of the RTA while the tenancy is still in existence and that lump sum compensation payments under section 83(d) ... should be considered where the tenancy has terminated.
the lessor must not cause or permit any interference with the reasonable peace, comfort or privacy of the tenant in the use by the tenant of the premises.
At the start of the tenancy, the lessor must ensure that the premises, including furniture, fittings, and appliances (unless excluded from the tenancy agreement) are fit for habitation, reasonably clean, in a reasonable state of repair, and reasonably secure.
The lessor must maintain the premises in a reasonable state of repair having regard to their condition at the commencement of the tenancy agreement.
Pursuant to clause 55(2) the tenant must notify the lessor of any need for repairs.
Subject to clause 55, the lessor must make repairs, other than urgent repairs, within 4 weeks of being notified of the need for the repairs (unless otherwise agreed)
The tenant must notify the lessor (or the lessor's nominee) of the need for urgent repairs as soon as practicable, and the lessor must, subject to clause 82, carry out those repairs as soon as necessary having regard to the nature of the problem.
(k) a fault or damage that causes the residential premises to be unsafe or insecure and
(m) a serious fault in any door, staircase, lift or other common area that inhibits or unduly inconveniences the tenant in gaining access to and use of the premises.
One thing is very clear, namely that there is necessarily a fair degree of value-judgment involved in attributing significance to something. Significance must also depend upon context. The very use of the term must frequently involve the subsidiary question significant for what?
42. The importance of the contextual setting was also stressed by Stein J in Drummoyne Municipal Council v Roads and Traffic Authority [1989] NSW LEC 19, who suggested that a significant effect "must be an important or notable affect . . . as compared with an affect which is something less than that, ie, non-significant or non-notable".
43. In Jarasius v Forestry Commission of NSW (No 1) [1988] NSWLEC 11; (1990) 71 LGRA 79 Hemmings J held at 93-94 that in considering whether developments had a significant impact upon the environment the term "significant" meant something of "importance" or "more than ordinary".
44. In the context of a statutory provision which authorises the Tribunal to intervene in contractual rights and to order a reduction in the agreed rent the term should not be taken to mean merely sufficient to prevent the issue being brushed aside as de minimus. See Lambeth London Borough Council v Grewal (1985) 82 Cr App R 301 at 306. On the contrary, I think it is most unlikely that the legislature intended to permit the Tribunal to be flooded by claims for relatively minor incursions into the use or enjoyment of leased premises and that something of "importance" or "more than ordinary" must be established.
Tenant's claim for breaches of the residential tenancy agreement
while the building maintenance issues have been significant, it is the failure of the Lessor to attend to the issues and effect urgent repairs in a timely manner that has led to the issues being protracted, and to the proceedings I initiated in the ACAT on 6 January 2016.
He had originally limited his application to urgent repairs but when it became clear to him that even getting urgent repairs attended to required an order from the Tribunal, he included in his claim all other items which were remiss with the property, namely the broken storage unit and latch and the lack of cleanliness of the common areas. He added, in the hearing, that it was a significant burden for him as the tenant to try to effect the repairs when the lessor had the legal and contractual obligation to do so and that it was not until the Tribunal hearing on 25 January 2016 that a process commenced to fix the various issues.
In Irena Peters v Commissionner for Housing for the ACT [2006] the then Residential Tenancies Tribunal decided that a lessor's obligation to repair under standard residential tenancy terms 54 and 55 is framed in mandatory terms, i.e. the lessor "shall" maintain the premises in a reasonable state of repair. It is therefore not a defence to any landlord to plead that reasonable steps were taken to rectify either patent or latent defects. The test is whether these defects were in fact remedied such as to maintain the premises in a reasonable state of repair.
The obligation to maintain premises in a reasonable state of repair, imposed by clause 55 of the standard terms on the lessor, is a mandatory obligation that is not diminished by the fact that the need for repairs is due to fault on the part of a third party, or by reliance on a third party to undertake repairs.
31. Where the lessor was in breach of her obligation to make repairs to the shower within four weeks of being notified of the need for the repairs, even if the breach did not arise from neglect on her part or Ms Reid's part, the tenant should be compensated for the breach. Compensation is payable not because of any neglect on the lessor's part but because the lessee continued to pay the weekly rent of $700 but did not have the use of the property to the extent of the deficiency.
32. Assessment of appropriate compensation is a question of judgement about which reasonable minds may differ. I assess compensation for the inconvenience of the unusable shower in the circumstance of this case from 1 April 2015 (being a date four weeks after the leak was reported) until its repair towards the end of May 2015 (being a period of approximately eight weeks) in the sum of $400.
[2] [2011] ACAT 9 at [8]
[4] Tenant's statement of claim filed 13 May 2016 at [6]
WITHERS-NORRIS
PASTRELLO
Cases cited: But v Baldwin (Residential Tenancies) [2016] ACAT 9
Craigie v Moore [2012] NSWCTTT 444
Kerai v Miller [2011] NSWCTTT 325
Maione v Vescovo [2006] SARTT 2
Salem & Gizgeez and Abeygunasekara & Jeevanthan [2011] ACAT 9
Truswell v Minister for Communication and the Arts (1996) 42 ALD 275
Worrall v Commissioner for Social Housing (2001) ACTSC 7