Capponi v Bridge Housing Limited

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Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Capponi v Bridge Housing Limited [2021] NSWCATCD 17
Hearing dates: 9 March 2021
Date of orders: 4 May 2021
Decision date: 30 April 2021
Jurisdiction:Consumer and Commercial Division
Before: J Alder, General Member
Decision:

1.The respondent is to pay the applicant the sum of $6,635.73 within 28 days.

Catchwords:

LEASES AND TENANCIES — Residential Tenancies Act 2010 (NSW) — Compensation — rent reduction — withdrawal of services — failure to repair — quiet enjoyment — non-economic loss — mould

Legislation Cited:

Residential Tenancies Act 2010 (NSW)

Civil Liability Act 2002 (NSW)

Category:Principal judgment
Parties: Cristina Capponi (Applicant)
Bridge Housing Limited (Respondent)
File Number(s): SH 20/45319
Publication restriction: Nil

REASONS FOR DECISION

Background

  1. In February 2017 Cristina Capponi (tenant) entered into a residential tenancy agreement (RTA) in relation to a two bedroom unit at Henrietta Street, Waverley (Premises). The weekly rent is $218.66. The Premises are approximately 100 years old. The tenant has been a social housing tenant of the respondent since 2012, having lived in four different residences around Sydney.

  2. On 28 October 2020, the tenant filed an application for orders under the Residential Tenancies Act 2010 (NSW) (Act) arising from alleged breaches by the respondent (Bridge) of its obligations under the RTA and the Act relating to mould issues. A copy of the RTA was not in evidence. It was submitted that Bridge manages the Premises on behalf of the owner, NSW Land and Housing Corporation (NSWLH).

  3. In her application (subsequently amended), the tenant sought orders for:

  1. compensation under s 187(1)(d) of the Act for breach causing:

  1. economic loss in the sum of $9,303.46, being the depreciated value of damaged goods (alternatively $16,818.84, being the replacement value of those damaged goods); and

  2. non-economic loss in the sum of $2,000 for loss of enjoyment, distress, anxiety, inconvenience and disappointment; and

  1. a 30% rent reduction under s 44(1)(b) of the Act in the sum of $3,422 for the withdrawal or reduction of services and facilities for the period 28 October 2019 to 28 October 2020.

Total: $14,725.46 (alternatively $22,240.84); and

  1. work to be undertaken to prevent mould and excessive moisture in the front bedroom, living area and kitchen of the Premises, pursuant to s 65 of the Act.

  1. The applicant alleges a breach of:

  1. s 63 of the Act for a failure by Bridge to maintain the Premises in a reasonable state of repair due to the severe mould; and

  2. s 50 of the Act for a breach of her right to quiet enjoyment of the Premises.

  1. The tenant’s main complaint is that since moving in she has experienced excessive damp and moisture and severe and overwhelming mould in the front bedroom, living area and kitchen and has made numerous requests for repairs to Bridge, who has failed to act.

Hearing

  1. On 9 March 2021, the matter came before me for final hearing. The parties appeared by telephone in light of the current Covid restrictions. Sworn oral evidence and…

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Details
Case
[2021] NSWCATCD 17
Decision Date

CaseChat Overview and Summary

Capponi v Bridge Housing Limited involved a dispute between a tenant, Capponi, and a landlord, Bridge Housing Limited, over the conditions of a residential lease in New South Wales. The central issue was whether the landlord's failure to maintain the premises and provide essential services justified a reduction in rent and entitled the tenant to compensation for non-economic loss due to the presence of mould. The dispute was heard and determined in the Local Court of New South Wales.

The primary legal issues revolved around the application of the Residential Tenancies Act 2010 (NSW) and the rights of tenants to compensation for breaches of their quiet enjoyment and the landlord's failure to maintain the property in a habitable condition. The court had to assess whether the landlord's actions constituted a substantial deprivation of the tenant's right to quiet enjoyment and whether this justified a reduction in rent and compensation for non-economic loss.

The court found that the landlord's failure to repair the property and provide essential services constituted a significant breach of the tenant's right to quiet enjoyment. The presence of mould in the property was a substantial health hazard that deprived the tenant of the expected comfort and enjoyment of the premises. The court concluded that the landlord was liable for a reduction in rent to reflect the diminished value of the rental property due to the breaches. Additionally, the court awarded the tenant compensation for non-economic loss, taking into account the impact of the mould on the tenant's health and wellbeing. The court determined that the appropriate amount of compensation was $6,635.73.

The court ordered that the landlord, Bridge Housing Limited, pay the tenant, Capponi, the sum of $6,635.73 within 28 days. This decision underscores the importance of landlords fulfilling their obligations under residential tenancy laws to maintain the property in a habitable condition and respect the tenant's right to quiet enjoyment.

Orders

Orders of the court

1.The respondent is to pay the applicant the sum of $6,635.73 within 28 days.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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