Disputes Tribunal of New Zealand

Contract / Construction / Applicant contracted by Respondent to build house / Measurements on plans did not match those on site / Project went overbudget / Applicant claimed compensation for additional cost incurred providing remedy / Held: Respondent could be liable for costs incurred to vary contract, provided builder complied with his obligations under the contract / Applicant breached their obligations as they failed to ensure the site had been accurately set out before commencing building / Respondent not liable to pay remedial works / Claim dismissed.

Contract / Applicant entered into an agreement to purchase land from Respondent / Applicant discovered there was no stormwater connection, despite it being a condition of the resource consent / Applicant claimed $29,800.00 in damages against Respondent and its director / Respondent counterclaimed $18,112.50, comprising non-liability and its costs defending proceedings / Held: director not a party to the contract, so that claim was dismissed / Respondent breached contract so must put Applicant in the same position as if contract had been performed / Applicant produced evidence that he had to pay $20,140.50 to establish stormwater connection / Respondent ordered to pay Applicant $20,140.50 / Claim granted in part and counterclaim dismissed.  

Contract / Misrepresentation / Applicants purchased land from Respondent / Respondent arranged Geotech report confirming topsoil depths / Site was found to contain more topsoil than advised and Applicants were required to pay additional $7,466.38 by builder / Applicant claimed compensation for additional costs incurred / Held: Respondent misrepresented depth of topsoil prior to settlement / Respondent agreed to pay for removal of additional topsoil / Respondent liable to compensate Applicants for additional costs incurred / Respondent ordered to pay Applicant $7,466.38 / Claim allowed.

Contract / Consumer Guarantees Act 1993 (CGA) / Applicant purchased vehicle from Respondent for $19,000.00, of which $1,500.00 plus $1,1000 for warranty was still owing / Vehicle was defective / Respondent took vehicle back for repair and offered Applicant a courtesy vehicle, which she declined as she would have to collect it from another city / Five months later Respondent supplied Applicant with replacement vehicle / Applicant claimed $5000.00 for lost income during period without vehicle, as she was unable to get to work, and balance of contract price waived / Held: Respondent seriously failed to meet obligations under the CGA within reasonable time / It was unreasonable for Applicant to choose not to work for five months rather than to collect courtesy vehicle / Applicant had duty to mitigate loss / Respondent ordered to pay applicant $2,400.00, being $5000.00 less the outstanding amounts due under contract / Claim allowed in part.

Contract / Parties rented premises from same landlord and shared power meter / Parties had agreement regarding sharing of cost of power / Applicant claimed Respondent breached agreement by not paying its agreed share of power / Applicant claimed $2,507.68 from Respondent / Held: valid and enforceable contract between parties / Respondent breached agreement by not paying its agreed share of power / Evidence indicated amount owing by Respondent was $2,507.68 / Respondent ordered to pay $2,507.68 / Claim allowed.

Contract / Applicant and Respondents were neighbours / Respondent pruned a tree on Applicant’s property damaging a plant and a trellis / Applicant alleged the tree was pruned without her consent / Respondent claimed Applicant requested the service, which was provided through his company / Applicant claimed for damages including for 2/3 the value of the tree,  pruning, plant value, trellis and for emotional stress / Respondent’s company counterclaimed for payment of its invoice / Held: no contract formed between Applicant and Respondent’s company nor with Respondent to prune tree /  Applicant did not consent to the Respondent pruning her tree / Respondent liable to compensate Applicant for damage to her tree, plant and trellis / Damages must be foreseeable such as property damage not emotional stress / Respondent ordered to pay $7,220.00 / Claim allowed in part and counterclaim dismissed.

Contract / Consumer Guarantees Act 1993 (CGA) / Applicant purchased puppy from Respondent for $5000.00 / Purchase agreement included list of conditions for which health guarantee was not provided / Six months after purchase, puppy started to display abnormal movements, confirmed by vet to be severe dysplasia / Applicant claimed full refund, but wanted to keep puppy as strong family bond had formed / Held: evidence insufficient to show puppy was not of acceptable quality / Hip dysplasia was a well-known issue with this breed / “Loose hips” was included in list of common conditions for which health guarantee was not provided in the agreement / No breach of CGA found / Claim dismissed.

Contract / Misrepresentation / Contract and Commercial Law Act 2017 / Applicant purchased car online from Respondent / Applicant had car freighted to him / Applicant claimed car was not as advertised / Applicant sought refund of $4000 purchase price and $1,300 paid for freight / Respondent denied liability, claimed car was clearly advertised as deregistered race car with no warrant of fitness / Held: misrepresentation was made about car / Car advertised as having specific kind of turbo, which it did not have / Other claimed misrepresentations not proven / Applicant entitled to compensation for misrepresentation, but not full refund / Respondent ordered to pay Applicant $1000 / Claim allowed in part.

Contract / Fair Trading Act 1986 (FTA) / Contract and Commercial Law Act 2017 (CCLA) / Applicant purchased used imported vehicle from Respondent / Applicant discovered issues with vehicle / Applicant claimed $23,269.74 refund of purchase price and maintenance costs / Held: Respondent not in trade / FTA and CCLA do not apply / Applicant has not established Respondent misrepresented vehicle / Claim dismissed.

Contract / Applicant’s technician attended Respondent’s premises to assist with non-functioning machine / Problem related to gas componentry of machine, therefore technician, who was an electrician, could not assist / Applicant claimed costs of attendance / Held: Applicant entitled to be paid for time of its technician / Applicant’s minimum charge in these circumstances was grossly excessive / Reasonable for Respondent to pay half of minimum charge due to misunderstandings in communication and brevity of technician’s attendance / Respondent ordered to pay Applicant $297.85 / Claim allowed in part.

Claim / Res judicata / Disputes Tribunal Act 1988 / Applicant filed claim relating to building warrant of fitness that was not provided prior to settlement of property transaction / Applicant claimed $30,000 / Held: claim already determined by Disputes Tribunal / Matter cannot be decided again / No particular factor that can set aside decision / Claim struck out.

Contract / Contract and Commercial Law Act 2017 / Applicant purchased vehicle from Respondent for $3,000 / Car Rental Company repossessed vehicle from Applicant / Respondent hired vehicle from Car Rental Company / Applicant claimed refund of purchase price / Held: Respondent liable to refund payment as Respondent did not have the right to sell goods / Respondent ordered to pay Applicant $3,000 / Claim allowed.

Negligence / Respondent’s car collided with drivers door of Applicant’s car / Applicant and insurer claim for repair costs / Held: Respondent failed to give way / Applicant did not contribute to collision / Applicant owed duty of care not to drive into Respondent's lane or across his path / Costs claimed are reasonable and are for the damage caused in collision / Cost ordered is to be paid to Applicant's insurer who will reimburse Applicant for their excess / Outcome: claim allowed, Respondent to pay $8,615.04 to insurer.