Disputes Tribunal of New Zealand

Contract / Negligence / Applicant Trust entered contract to purchase herd of cows from Applicant Company / Company intended sale to be conditional on a conversion of their property to kiwifruit / When kiwifruit project was cancelled, Company pulled out of sale of cows / Trust sought compensation from both the Company and the Respondent Agent who had brokered the deal / Agent paid Trust $27,000 in good faith / Trust obtained Tribunal order against Company for $18,472.66 / Company filed claim against Agent for $26,281.10 on grounds Agent breached duties to Company under agency agreement / Agent sought indemnity from Trust to protect against liability to Company / Trust filed claim seeking declaration of non-liability to Agent / Held: Both Company and Agent had some responsibility for failure to include kiwifruit condition in contract with Trust / Insufficient evidence that Agent breached its obligations to Company / Agent protected by liability limitation clause in contract against liabi…

Insurance / Property / Motor vehicle collision involving three drivers / Applicant claimed $7,036 for losses suffered because of vehicle being uneconomic to repair / Second Respondent counter-claimed $9,000 pre-accident value of his vehicle / Held: not proven that First Respondent entered Second Respondent’s lane / Not proven that First Respondent is liable in negligence / Second Respondent liable for resulting damage to Applicant’s vehicle / Second Respondent ordered to pay Applicant’s Insurer $7,036 / Claim against First Respondent dismissed / Claim against Second Respondent allowed.

Contract law / Contract and Commercial Law Act 2017 / Applicant won online auction to purchase vehicle from Respondent / Respondent says his brother listed vehicle on auction without his permission / Applicant claimed $11,900 which is the difference between the winning bid and what the vehicle resold for 5 days later / Held: enforceable contract between Applicant and Respondent / Respondent breached contract / Remedy being difference between the market price of vehicle and the winning bid at auction / Respondent ordered to pay Applicant $10,900 / Claim allowed.

Consumer law / Consumer Guarantees Act 1993 / Applicants booked holiday accommodation online / Accommodation was advertised online by owner’s booking agent, the Respondent / Applicants paid $940.00 for two nights plus $800.00 bond / On arrival, Applicants discovered a dog on the property, key in the door, doors unlocked, no fence between holiday property and the other house on site, and parcels at the front door / Applicants advised owner of their concerns / Owner arriving about 50 minutes later / Owner also phoned her daughter who collected her dog from the property / Applicants also rang the Respondent to advise them of their concerns / Respondent advised by owner that she was on her way back to address the Applicants’ concerns so took no further action / Applicants secured alternative accommodation / Applicants claimed $2000.00, refund of $940.00 paid for accommodation, alternative accommodation costs and general damages / Held: Applicants were unhappy about the dog and parcels but …

Contract / Misrepresentation / Contract and Commercial Law Act 2017 / Applicant purchased quadbike from Respondent for $2000.00 / Advertisement stated bike was 4WD / After purchase, Applicant discovered it was a 2WD bike / Conversion to 4WD costed at $2,500.00 - $2,750.00 / Applicant claimed bike not worth spending that much on and sought a refund of $2000.00 plus Tribunal fee of $90.00 / Held: Respondent misrepresented bike in advertisement which induced Applicant to purchase it / Respondent ordered to pay Applicant $2000.00 / Tribunal fee cannot be awarded as not exceptional circumstances / Claim granted in part.

Contract / Respondent entered into Deed of Lease with Applicant to lease property / Lease was to take effect on 1 August 2021 / Covid-19 lockdown took place between August 2021–October 2021 / Applicant sought $30,000.00 for unpaid rent and outgoings / Held: Covid-19 pandemic legislation did not vary signed Deed of Lease / Legislation provided a guide for Lessors and Lessees to come to an arrangement for rent relief / Applicant attempted to enter into discussions about rent relief with Respondent, but Respondent did not engage / Because Respondent failed to engage, agreement between the parties remained as per Deed of Lease / Applicant entitled to claim $30,000.00 for overdue rent and outgoings that Respondent agreed to pay and failed to pay / Respondent bound by terms of agreement / Respondent ordered to pay $30,000.00 / Claim allowed.

Contract / Contract and Commercial Law Act 2017 / Applicant ordered a forklift from Respondent in September 2022 /  Forklift had to be sourced from overseas / Respondent stated the delivery would be in “44 weeks approx.” / Applicant paid $6,891.95 deposit to Respondent / In April 2023, Applicant inquired about the forklift and was advised that delivery would be in November 2023 / In August 2023, Applicant sought a further update and was advised that the expected delivery would be December 2023, or January 2024 / Applicant advised that it could not wait any longer and cancelled the order  / Applicant requested a  deposit refund, which the Respondent declined / Applicant sought an order for deposit amount, less the amount of an invoice from an associated company of Respondent for $3,209.87 / Held: delay in delivery went beyond what was reasonable / Delivery of forklift within the approximate timeline was a matter of importance / Failure by the Respondent to deliver in approximately 44 we…

Contract / Consumer Guarantees Act 1993 / Applicant undertook renovation work for Respondent’s house / Applicant claimed $856.00 for outstanding balance owing for work / Respondent counterclaimed $6,247.65 compensation for Applicant’s unsatisfactory workmanship / Held: Applicant’s work not carried out with reasonable care and skill, and not fit for purpose / Failures were substantial / Respondent justified in losing confidence in Applicant and engaging other tradespeople to rectify defects and complete job / Respondent entitled to full refund of money paid to Applicant for his labour ($1,120.00), cost of materials used that were wasted ($1,647.65), and additional work required for electrician ($303.60) / Applicant ordered to pay $3,071.25 / Claim dismissed and counterclaim allowed in part.

Consumer law / Consumer Guarantees Act 1993 / Respondent engaged Applicant to polyurethane the floors at its property / Respondent paid 50% deposit of $6,790.75 / Respondent was dissatisfied with Applicant’s work and refused to pay final invoice / Applicant claimed $6,790.75 for outstanding invoice / Respondent counter-claimed for declaration of non-liability for outstanding sum / Held: photographs clearly showed defects described by Respondent including sanding marks, paint brush hairs, dust or fine debris and uneven finishes in parts of the polyurethane / Most probably these defects occurred as work was carried out, not caused by use of floors by Respondent over following months / Work was not carried out with reasonable care and skill / Failure was of substantial character / There was reduction of value of at least the amount of $6,790.75 / Respondent not liable for final invoice / Claim dismissed, counter-claim allowed.

Contract / Consumer Guarantees Act 1993 / Applicant signed agreement to purchase vehicle from Respondent / Applicant paid $6,570.00 in cash and organised finance for further $10,000.00 / When Applicant picked up vehicle, several warning lights displayed, spare key did not work, headlights needed polishing, right wing mirror did not operate properly, and air conditioning was not cooling / Respondent agreed to remedy issues and provided courtesy car / Courtesy car’s warrant of fitness was expired / Respondent notified Applicant vehicle was ready 3 months later / Applicant chose not to take delivery / Applicant claimed $18,012.63, being full refund plus finance costs / Held: vehicle was not of acceptable quality when purchased / Unreasonable to expect consumer who has just purchased a car to immediately be deprived of its use for months on end / Applicant entitled to full refund and to recover finance costs / Respondent ordered to pay $18,156.84 / Claim allowed.

Contract / Contract and Commercial Law Act 2017 / Applicant contracted by Respondent for interior design work on Respondent's new restaurant / Respondent asked Applicant to stop working on the project stating that the Applicant had not engaged with concept in accordance with original brief / Applicant claimed unpaid invoice for work completed / Held: not proved that Applicant breached its obligations to give work due attention and to advance it in a reasonably timely way / Respondent ordered to pay Applicant $17,738.76 / Claim allowed

Contract / Consumer Guarantees Act 1993 / Applicants engaged Respondent to repair their house, which had weathertightness issues / Parties agreed on cost of $23,300 plus GST and 6-week time frame / Applicants claimed $30,000: for refund, 6 months’ rent while waiting for completion of work, building and roofer’s reports, bricklayer costs, legal expenses and damages for emotional harm and stress / Held: Respondent failed to complete work within reasonable time / Respondent failed to exercise reasonable care and skill, and outcome of work was not reasonably fit for purpose / Quantity surveyor’s report, building report and roofing report all found substantial defects / Failures were of substantial character / Applicants entitled to cancel contract / Applicants entitled to refund of money paid, cost for roof report, some legal expenses, and rental expenses for time after work should have been completed / Respondent ordered to pay $26,415.50 / Claim allowed in part.