Disputes Tribunal of New Zealand

Consumer law / Contract / Applicant purchased phone through Respondent's website / Purchase price included trade-in value of Applicant's old phone / Estimated trade-in amount was $220.00 / When Applicant send his old phone in the trade-in value was reduced to $40.00 / Applicant claimed that undervalued his old phone / Applicant sought $418.00, based on a resale website estimate / Respondent claimed Applicant was given estimated trade-in value of $220.00 / Phone was then sent to a third party who discovered water damage and battery issues which lowered phone value to $40.00 / Held: not sufficient evidence that there was a breach of contract / Applicant given the option to accept or reject $40.00 offer / Claim dismissed.

Contract / Fair Trading Act 1986 / Applicant ran a vinyl fair at Respondent’s venue for many years / In 2022, Applicant exchanged emails with Respondent’s venue manager about booking the venue for dates in May and November 2023 / In August 2023, Respondent advised Applicant that the November date was no longer available / Applicant sought compensation for loss of revenue and other associated costs with the fair not proceeding in November / Held: agreement between Applicant and Respondent for use of the venue in November was a pencilled-in booking / A pencilled-in booking can be cancelled by either party at any time prior to it being confirmed / Applicant’s booking was not confirmed before Respondent cancelled it / Respondent not legally obliged to make venue available to Applicant on November date / Claim dismissed.

Consumer law / Building Act 2004 / Consumer Guarantees Act 1993 / Applicant bought new build home from Respondent in 2009 / Applicant claimed shower liner in ensuite shower had detached from the wall, therefore must not have been installed correctly / Applicant claimed $6,000.00 to fix shower / Held: claim was time barred as it was brought more than ten years since alleged failure / Claim dismissed.

Contract / Consumer Guarantees Act 1993 / Applicant purchased inverter from Respondent / Inverter overheated and could not be repaired / First Respondent declined Applicant's request for refund / First Respondent stated inverter was water damaged / Applicant claimed full refund / Held: insufficient evidence that watermarks caused the failure of inverter / Inverter was not of acceptable quality / Applicant entitled to refund / Claim against First Respondent dismissed as Applicant did not form contract with him / Second Respondent ordered to pay Applicant $588.33 / Refund reduced by 34 months of the 120 months expected life of the unit / Claim allowed in part.

Consumer law / Misrepresentation / Contract and Commercial Law Act 2017 / Consumer Guarantees Act 1993 / Fair Trading Act 1986 / Applicant booked tour with Respondent’s company for himself and his parents to travel to three European cities / Applicant was unhappy with tour and said Respondent failed to deliver what was promised / Applicant sought partial refund of $4920 / Held: Respondent did not make false or misleading representations about trip / Trip covered what was offered / One hotel room was not up to standard / Applicant was entitled to room appropriate for triple occupancy, but was given twin occupancy room with added rollaway bed / Certain parts of the tour were not provided with reasonable care and skill / Breach not of substantial character as parts of trip were delivered as promised / Appropriate to award damages in relation to hotel room and overall customer experience / Respondent ordered to refund Applicant $600 / Claim allowed in part.

Consumer law / Consumer Guarantees Act 1993 / Applicant purchased a horse from Respondent / Applicant intended to develop the horse for dressage and show jumping events / Applicant declined to get a vet pre-purchase check / Applicant claimed after purchase that a pre-existing condition became apparent / Applicant claimed $24,155.06 on the basis that the horse was not fit for purpose due to pre-existing condition / Held: Applicant did not met the threshold in claiming the horse was not fit for purpose / Evidence by vets indicated horse could become an able jumping horse / No evidence found of pre-existing condition / Text messages suggested real reason for rejecting the horse was that the Applicant’s wife was not happy with the purchase / Claim dismissed.

Contract / Consumer Guarantees Act 1993 / Applicant engaged Respondent to draw plans for their intended new home / Respondent did not deliver plans on time or addressed changes requested by Applicant / Applicant cancelled contract and sought refund of fees / Held: Respondent did not carry work with reasonable care and skill / Initial plans do not reflect brief / Plans exceeded Applicant's budget / Agreed timeline not kept and Respondent failed to respond in a timely and professional way / Applicant entitled to full refund of fees / Respondent ordered to pay Applicant $2,875 / Claim allowed.

Contract / Consumer Guarantees Act 1993 / Fair Trading Act 1986 / Applicant booked a cruise with Respondent / Applicant cancelled booking two weeks before departure, believing Respondent had changed its Covid protection requirements from those it had advertised, resulting in no protective Covid policy at all / Applicant requested full refund of $15,212.50 / Respondent declined refund in reliance on its terms and conditions, which stated funds were non-refundable for cancellation within 90 days of departure / Applicant claimed $16,212.50, for refund plus $1,000.00 for cancelled flights, interest and mental stress / Held: Respondent did not breach contract / Applicant unable to prove that pre-departure screening or testing for COVID-19 for all passengers was a term of contract / Respondent provided services with reasonable care and skill / Respondent’s conduct was not misleading or deceptive / Claim dismissed.

Contract / Applicant purchased house from Respondent / After settlement, central heating found not to be working properly / Applicant paid for repairs which cost $396.75 / Problem not remedied so Applicant had gas valve replaced costing $908.50 / Held: agreement for sale and purchase agreement included gas central heating as a chattel in the sale / There was a warranty that central heating would be in reasonable working order on settlement / Fact central heating was not working soon after settlement was sufficient evidence to infer the problem existed on settlement day / Respondent ordered to pay Applicant $1,305.25 / Claim granted.

Negligence / Consumer Guarantees Act 1993 (CGA) / Applicant purchased some sound equipment from a seller advertised on Respondent’s website / Applicant did not receive the goods / Applicant later discovered seller had been removed by Respondent from its site / Applicant subsequently learned site had been subject of a phishing scam / Applicant claimed Respondent was negligent and or breached CGA by failing to inform him the seller was a scam / Applicant claimed $720.00 from Respondent / Held: Applicant’s claim in negligence was for economic loss not for loss or destruction of property, therefore outside Tribunal’s jurisdiction to hear claims in tort / Respondent’s contractual terms and conditions went to some lengths to explain Respondent was not responsible for things beyond its control / Scam was clearly example of something beyond Respondent’s control / Respondent provided services with reasonable care and skill / Claim dismissed.

Contract / Misrepresentation / Contract and Commercial Law Act 2017 / Respondent purchased a motorhome from Respondent for $20,000.00 / Respondent had paid $5000.00 / Applicant sought remaining $15,000.00 as well as $2,450.00 for the use of his workshop / Respondent counterclaimed $27,000.00 for repairs discovered after purchase; less $14,000.00 he acknowledged he owed to the Applicant / Held: motorhome was 37 years old when purchased / Onus on Respondent to carry out his own due diligence as was a ‘buyer beware’ situation / No misrepresentation / Not sufficient certainty of a binding contract between the parties about the use of the workshop / Respondent had breached the contract by failing to pay full amount for motorhome / Respondent liable for outstanding balance of $14,000.00 / Claim partially granted and counterclaim dismissed.

Contract / Applicants purchased property in Respondent’s development / Applicants expressed need for yard space, chose lot with most yard space / Specification documents sent prior to purchase included full-height wardrobes in each bedroom / In pre-settlement inspection, Applicants discovered useable yard space was significantly reduced by inset steps and inward gate swing, and large bulkhead was taking up significant space in one wardrobe / Applicants raised issues, Respondent stated contract allowed it to vary plans if required / Applicants claimed $2,000.00 compensation for wardrobe and $14,000.00 for yard, based on loss of volume and useable land area/amenity respectively / Held: Variations made by Respondent were of lesser quality than specified, and materially diminished value, use and enjoyment of the dwelling, in breach of contract / Applicants would not have purchased property had they known of these outcomes which were not remediable / Sums claimed were reasonable compensatio…

Contract / Consumer Guarantees Act 1993 / Respondent engaged Applicant to advocate for them in a personal grievance with their employer / Respondent contracts with its clients on a contingency basis until the end of mediation / All additional work performed on an hourly rate / Clients required to pay fees on an hourly basis if they terminate contract prior to an outcome / Respondent terminated contract prior to reaching outcome with employer / Applicant sought payment of invoice ($5182.50) plus debt collection costs ($1042.50) / Held: contract  formed between the parties, which included terms of engagement that were not 'harsh or unconscionable'/ Applicant failed to provide its advocacy services with reasonable care and skill / Respondent entitled to 75% fee reduction, $1035.00 / Applicant unable to be awarded disputed debt collection expenses / Claim allowed in part.