| CITATION: | Fankhauser & Anor v Mission Beach Property Management [2017] QCATA 65 |
| PARTIES: | Matthew Fankhauser Laura Fankhauser (Applicants/Appellants) | |
| v | ||
| Mission Beach Property Management | ||
| APPLICATION NUMBER: | APL197-16 | |
| MATTER TYPE: | Appeals |
| HEARING DATE: | On the papers |
| HEARD AT: | Brisbane |
| DECISION OF: | Justice Carmody |
| DELIVERED ON: | 26 May 2017 |
| DELIVERED AT: | Brisbane |
| ORDERS MADE: | IT IS THE DECISION OF THE APPEAL TRIBUNAL THAT: 1. Leave to appeal is granted. 2. The appeal is allowed to the extent that the compensation order is varied by adjusting the quantum of compensation $1,800 to $500. 3. The appellant/applicant (Fankhauser) is to pay the respondent (Mission Beach Property Management) $608.70. 4. Otherwise, the decision is confirmed. | ||
| CATCHWORDS: | APPEAL – LEAVE TO APPEAL – MINOR CIVIL DISPUTE – where landlords agent applies for compensation for accidental damage to an eight year old carpet in residential premises – where former tenants admit breach – where carpet irreparable and lessor proposes to reinstate it by replacement – principles for measuring loss of depreciated fixtures in rented premises and betterment deduction claim Queensland Civil and Administrative Tribunal Act 2009 (Qld), ss 13, 32, 38, 100, 102 Residential Tenancies and Rooming Accommodation Act 2008 (Qld), ss 362, 421 Badham v Williams [1968] NZLR 728 Lukin v Godsall (1795) Peake Add. Cas. 15 One Door Property Pty Ltd v Hawthorne [2015] QCATA 58 The Gazelle (1844) 2 W.Rob.(Adm.) 279 | ||
APPEARANCES and REPRESENTATION:
This matter was heard and determined on the papers without the attendance of either party in accordance with s 32 of the Queensland Civil and Administrative Tribunal Act 2009 (Qld) (QCAT Act).
REASONS FOR DECISION
This is an application for leave to appeal the quantum of a compensation award against the applicant tenants for permanently staining a carpet in leased residential premises.
The respondent claim the estimated replacement cost ($2,500) less betterment ($700). The applicants concede that the damage exceeds fair wear and tear and admit liability limited to $300 or about 20 per cent of their new for old quote of $1,529.
Since reinstatement (old for old) is clearly not feasible here and meeting the full cost of a new replacement carpet would be an inequitable solution, the tribunal capped the respondent’s compensation liability at two-thirds (2/3rds) of the replacement cost on account of so called betterment.
The applicants contend the award is excessive for a depreciated carpet that only cost the…
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- Case
- [2017] QCATA 65
- Decision Date
CaseChat Overview and Summary
The legal issues before the tribunal encompassed the assessment of the extent of the damage, the calculation of the appropriate compensation, and the application of the betterment principle. This principle prevents a tenant from profiting from improvements made to a rented property. The tribunal had to evaluate the depreciation of the carpet over its eight-year lifespan and decide whether the proposed replacement cost was justified, considering the betterment principle.
The tribunal ruled that the compensation order should be reduced from $1,800 to $500, reflecting the depreciation of the carpet over time. The tribunal concluded that the proposed replacement cost was excessive and did not account for the betterment principle, which restricts the compensation to the diminished value of the fixture rather than its full replacement cost. The tribunal allowed the appeal, adjusted the compensation amount, and ordered the appellant to pay the respondent the adjusted compensation amount. This decision confirmed the tribunal's authority to balance the principles of compensation and betterment in minor civil disputes.
Orders
Orders of the court
IT IS THE DECISION OF THE APPEAL TRIBUNAL THAT:
1. Leave to appeal is granted.
2. The appeal is allowed to the extent that the compensation order is varied by adjusting the quantum of compensation $1,800 to $500.
3. The appellant/applicant (Fankhauser) is to pay the respondent (Mission Beach Property Management) $608.70.
4. Otherwise, the decision is confirmed.
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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