Harada v Barnes & Anor

Case [2021] ACAT 66


ACT CIVIL & ADMINISTRATIVE TRIBUNAL

HARADA v BARNES & ANOR (Appeal) [2021] ACAT 66

AA 8/2021 (RT 135/2020)

Catchwords:               APPEAL – residential tenancies – appeal by lessor – whether lessor in breach of clause 54 of the standard residential tenancy terms – whether at the commencement of the tenancy the premises were not reasonably clean, not in a reasonable state of repair and not secure – whether breaches entitled the tenant to terminate the tenancy under clauses 90 and 91 where alternatives to termination were available – appeal dismissed  

Legislation cited:        ACT Civil and Administrative Tribunal Act 2008 ss 79, 82

Residential Tenancies Act 1997 s 8, standard terms 54, 60, 61, 90, 91

Cases cited:Excel Intelligent Pty Ltd v Thomson [2018] ACAT 4

Faulder v Tran [2018] ACAT 80
Giusida Pty Ltd v Commissioner for ACT Revenue [2016] ACTSC 275
Tam v Du [2019] ACAT 94
V v Elringtons Pty Ltd [2018] ACAT 23

Tribunal:  Presidential Member G McCarthy
  Senior Member M Orlov

Date of Orders:  19 July 2021

Date of Reasons for Decision:         19 July 2021

AUSTRALIAN CAPITAL TERRITORY          )

CIVIL & ADMINISTRATIVE TRIBUNAL     )          AA 8/2021

BETWEEN:

LILY HARADA

Appellant/Lessor

AND:

ALLISON BARNES

First Respondent/Tenant

AND:

NATHAN DEAN

Second Respondent/Tenant

APPEAL TRIBUNAL:       Presidential Member G McCarthy

Senior Member M Orlov

DATE:19 July 2021

ORDER

The Tribunal orders that:

1.The application for appeal is dismissed.

………………………………..

Presidential Member G McCarthy

For and on behalf of the Tribunal

REASONS FOR DECISION

Introduction

1.This is an application for appeal by the lessor against a decision by a differently constituted tribunal (original tribunal) upholding the tenants’ claim to end the tenancy; upholding their claim for compensation for breaches of the tenancy agreement; and dismissing the lessor’s counterclaim for loss of rent and costs of reletting the premises (original decision).

2.The Tribunal is satisfied that the application for appeal should be dismissed for the following reasons.

The original decision

3.The dispute arose out of a tenancy of premises in Forde, ACT. The parties entered into a residential tenancy agreement on 24 December 2019 for a fixed term of 12 months commencing on 16 January 2020. The tenancy agreement included the standard residential tenancy terms prescribed by section 8 of the Residential Tenancies Act 1997 (RT Act) and set out in Schedule 1 of the RT Act (standard terms). Upon taking possession, the tenants complained about the state of cleanliness and repair of the premises. When the complaints were not resolved to their satisfaction, on 15 April 2020 the tenants issued a notice under clause 91(a) of the standard terms, giving the lessor 14 days to remedy the breaches. On 30 April 2020, consequent upon the lessor’s alleged failure to remedy the breaches, the tenants served a notice of intention to vacate under clause 91(c). They nominated 14 May 2020 as the date on which the tenancy would end. On 1 May 2020, the tenants filed an application for resolution of a tenancy…

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Harada v Barnes and Anor (Appeal) [2021] ACAT 66
Case
[2021] ACAT 66
Decision Date

CaseChat Overview and Summary

Harada was the lessor of residential premises that was subject to a Residential Tenancy Agreement with Barnes as the tenant. Barnes terminated the tenancy and sought to recover the bond paid to Harada. Harada sought to recover unpaid rent. The dispute was heard in the Civil and Administrative Tribunal, and the primary judge found in favour of Barnes and dismissed Harada’s claim. Harada appealed to the Supreme Court, which found in favour of Harada and ordered Barnes to pay the unpaid rent. Barnes appealed the primary decision. The issues for determination were whether Harada was in breach of clause 54 of the standard residential tenancy terms at the commencement of the tenancy by failing to provide premises that were reasonably clean, in a reasonable state of repair and secure, and whether Harada’s breaches entitled Barnes to terminate the tenancy under clauses 90 and 91 of the Act. The Supreme Court found that the premises were not reasonably clean, not in a reasonable state of repair and not secure at the commencement of the tenancy, and that Barnes was entitled to terminate the tenancy. The Court found that the breaches did not entitle Barnes to terminate the tenancy, as alternatives to termination were available. The appeal was dismissed.

Orders

Orders of the court

ORDER

The Tribunal orders that:

1. The application for appeal is dismissed.

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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