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Full Circle Real Estate Ltd v Piper [2019] NZDC 4947

Published 24 September 2021

Appeal of tenancy tribunal decision — reimbursement — costs of methamphetamine testing — use of methamphetamine in property — contamination level — tenant's obligation not to intentionally or carelessly damage premises — Gluckman Report — Residential Tenancies Act 1986, ss 40, 41, 70, 85 & 117(1) — Shotover Gorge Jet Boats Limited v Jamieson [1987] 1 NZLR 437 (CA). The appellant property manager appealed against a decision made by the Tenancy Tribunal that found the respondent tenant was not liable to pay reimbursement for methamphetamine testing. The state of the property after the tenant moved out rang alarm bells motivating the property manager to test for methamphetamine contamination. 12 of 16 tests of the property showed concentrations of methamphetamine residue above 1.5 micrograms per 100 square centimetres with results of 11.06 and 14.78 in the lounge, 12.46 in a bedroom and 16.85 in the toilet. The adjudicator at the Tribunal hearing found there had been no damage to the property as the contamination levels found fell below 15 micrograms per 100 square centimetres except in the toilet. Recommendations from the Office of the Prime Minister’s Chief Science Advisor (the Gluckman Report) released in May 2018 deemed levels below 15 did not pose risks to human health. The appellant argued the adjudicator should have adopted the New Zealand Standard 8510:2017 which provided that levels of contamination above 1.5 could pose a risk to human health. The Judge disagreed, finding the adjudicator was correct to rely on the most current scientific knowledge available. Further, as no testing had been done prior to the tenant moving in to the property there was no certainty that the contamination occurred during her lease. The appeal was dismissed. Given the nature of the case the Judge recommended costs lie where they had fallen. The Judge also expressed a hope that amendments to the Residential Tenancies Act would provide some certainty around the issue of methamphetamine contamination levels in rental properties. Judgment Date: 19 March 2019.

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