Landlord to pay $11k for uninsulated Auckland villa, failing to lodge bonds

The claim was brought to the Tenancy Tribunal by MBIE and the landlord was ordered to pay $11,000 in damages to the tenants. Photo / 123rf

A company directed by a man living in Russia has been ordered to pay more than $11,000 after a plethora of tenancy law breaches at a New Zealand property.

The dispute centres around a large farm property and villa in Auckland, complete with orchards and stables.

The property is leased by Hambletonian Ltd which is solely directed by David Phillips, who splits his time between New Zealand and Russia.

The case against Hambletonian was brought to the Tenancy Tribunal by the Ministry of Business Innovation and Employment (MBIE), after a complaint from a tenant.

Multiple tenants lived at the property, all with different tenancy agreements, according to a decision of the tribunal.

Hambletonian alleged these tenants were in a “flatmate” arrangement, not a boarding house.

One of the tenants lived in the attic of the property, with her own bathroom and kitchen.

She had signed her own tenancy agreement, and the tribunal agreed she was a legal tenant.

The other three tenants lived in the downstairs part of the villa, with shared facilities but their own bedrooms.

Philips said when he was in New Zealand he lived in the upstairs part of the villa as his sole residence, claiming all other occupants in the large home were his flatmates.

But the tribunal disagreed, pointing to evidence that included directives from Phillips on house rules and how to save on water use, as well as the shared use of facilities - sometimes by as many as six tenants.

It ruled the downstairs part of the villa was a boarding house, not a tenancy.

MBIE alleged Hambletonian failed to lodge three of the renters’ bonds. But Phillips said the money was not a bond but a “land access” fee.

The tribunal disagreed, ordering $1600 in exemplary damages for failure to lodge the bonds.

MBIE further alleged the property was not compliant with Healthy Home standards. It claimed heating and ventilation was insufficient, but the tribunal ruled there was not enough evidence and dismissed the three parts of the claim.

However, MBIE succeeded in its claim that there was a large hole in the ceiling and a gap in a door, as well as a breach of an obligation to insulate boarding houses that became law in July 2019.

Three tenants were awarded between $1500 and $500 each for the insulation breach, while two were awarded $200 each for the hole in the ceiling.

Two of the renters were also awarded $500 each for a lack of smoke alarms in their rooms.

Hambletonian was also ordered to pay exemplary damages of $1500 to one tenant, and $1200 to another two. The total tribunal order amounted to $11,325.

While Phillips directs Hambletonian Ltd, the company is owned by two Auckland lawyers, Pat Castle and Miles Brown of Castle Brown Barristers and Solicitors.

Brown told NZME that he hasn’t spoken to Phillips in some years and doesn’t know if he is residing in New Zealand.

He refused to answer questions on the case, but said he was aware of the proceedings.

MBIE national manager tenancy compliance and investigations Brett Wilson said parties cannot contract out of the Residential Tenancies Act.

“This means that a landlord cannot avoid his or her obligations by labelling the relationship as something other than a residential tenancy.

“Landlords should be aware of their obligations under the Residential Tenancies Act and work to ensure they are meeting them.”

Phillips and Castle could not be reached for comment. Phillips has applied for a rehearing of the case.

Ethan Griffiths covers crime and justice stories nationwide for Open Justice. He joined NZME in 2020, previously working as a regional reporter in Whanganui and South Taranaki.