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Eren Ltd v Martin [2021] NZDC 15210

Published 29 March 2022

Tenancy Tribunal appeal — methamphetamine levels — drug testing — compensation — Residential Tenancies Act 1986, ss 40(2)(b), 85 & 97(4) — Full Circle Real Estate Ltd v Piper [2019] NZDC 4947 — Housing New Zealand Corporation v Salt [2008] DCR 697. The appellant landlord appealed a decision of the Tenancy Tribunal in which the Tribunal declined to make an award of costs associated with methamphetamine testing at the rental premises, decontamination and lab analysis. The Tribunal had ruled that the landlord's claim for this could not succeed because the landlord had not proven that the tenants smoked methamphetamine at the premises nor provided evidence of drug paraphernalia. The Tribunal also found that the premises were not contaminated to the required level under the Gluckman Report. This level differed to that applied by insurers and firms involved in decontamination work. The appellant's appeal was founded on the "unlawful act" ground under s 40(2)(b) of the Residential Tenancies Act. Testing showed there had been methamphetamine consumed at the premises; however, all the evidence provided was circumstantial, and the Tribunal was entitled to treat it as such. The most significant issue was that there had been no methamphetamine testing carried out at the start of the tenancy. This meant it was not possible to determine on the balance of probabilities that it had been the respondent tenants who had consumed methamphetamine at the premises. Absent this, the Gluckman Report was to be adopted when determining compensation for methamphetamine contamination. The appeal was therefore dismissed. Judgment Date: 3 August 2021.

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