district court logo

Nice Place Ltd v Paterson [2018] NZDC 20936

Published 20 June 2019

Appeal from Tenancy Tribunal — subletting — breach of contract — accounting of profit — calculation of profits — unjust enrichment — Adlam v Savage [2016] NZCA 454. The landlord, had been awarded $2150 by the Tenancy Tribunal against the respondent for subletting their apartment on an accommodation booking site without consent, in clear breach of the tenancy agreement. The appellants (the landlord's agent) appealed the order on behalf of the landlords, claiming the Tribunal miscalculated the profits and seeking a further $5,437.70. The Judge found that the Tribunal made two errors in its calculation. First it had deducted the gross revenue received by the respondent from the rent he paid to the landlords rather than the other way around. That resulted in a positive figure only because of the second error which was to use the figure for the entire six months period rather than a pro rata amount equating to the rental for 55 days, as the respondent was able to enjoy the use of the apartment himself when it was not sublet through the booking company. The Judge allowed the appeal and increased the amount awarded for account of profits to $7,587.70 and the total sum payable by the respondent was therefore increased to $16,950.99. Judgment Date: 12 October 2018.

Tags