Moroko v Cojay Holdings Pty Ltd

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Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Moroko v Cojay Holdings Pty Ltd [2022] NSWCATCD 79
Hearing dates: 4 March 2022; final submissions 18 March 2022
Date of orders: 12 May 2022
Decision date: 12 May 2022
Jurisdiction:Consumer and Commercial Division
Before: P French, Senior Member
Decision:

(1) Clauses 2.1(d) and (e) of the variation to the residential tenancy agreement dated 23 June 2021 are void and of no effect.

(2) The rent payable for the premises was excessive for the period 6 April 2021 to 1 March 2022 and must not exceed $770.00 during this period.

(3) Cojay Holdings Pty Ltd must pay Daniel Moroko and Joseph Pamment $14,143.00 immediately.

Catchwords:

LEASES AND TENANCIES: Residential Tenancies Act 2010 (NSW) – tenant’s claim that rent was excessive having regard to the reduction or withdrawal, by the landlord of goods, services and facilities provided with the residential premises.

LEASES AND TENANCIES: Residential Tenancies Act 2010 (NSW) - prohibited terms – prohibition on contracting out

Legislation Cited:

Residential Tenancies Act 2010 (NSW)

Residential Tenancies Regulation 2019 (NSW)

Cases Cited:

Eliezer v Residential Tribunal and Ors [2001] NSWSC 1092

Roberts v Aboriginal Housing Office [2017] NSWCATAP 9

Texts Cited:

Nil

Category:Principal judgment
Parties: Daniel Moroko (First Applicant
Joseph Pamment (Second Applicant)
Cojay Holdings Pty Ltd (Respondent)
Representation: Daniel Moroko (Self-represented)
Ray White Double Bay (Respondent)
File Number(s): RT 21/52576
Publication restriction: Nil

REASONS FOR DECISION

Introduction

  1. This is an application by tenants for an order pursuant to s 44(1)(b) of the Residential Tenancies Act 2010 (RT Act) that would declare that the rent payable for the premises was excessive by 50% of the rent payable (which was $1,100.00 per week) in respect of the period 6 April 2021 up to 1 March 2022 due to the reduction or withdrawal, by the landlord, of goods, services and facilities provided with the residential premises. The tenants had originally also sought other orders for repairs and declaring a termination notice retaliatory, but by the time of the hearing they had returned possession, which resulted in these claims falling away. This application was made to the Tribunal on 30 December 2021 (the application).

  2. For the reasons set out following, the Tribunal is satisfied that the landlord withdrew from the tenant’s use a large roof deck provided with the residential premises during the whole period of the tenancy, and an additional cabana/pergola area from approximately June 2021. It is also satisfied that the tenants’ use of the premises was reduced by the landlord in other respects to a level far below the standard required to be provided by a landlord under a residential tenancy agreement. The landlord has already compensated the tenant for the loss of the roof deck in respect of a one-month period by providing two weeks rent free from 4 April 2021. The Tribunal has therefore made an excessive rent order reducing rent payable for the premises from 4 May 2021 up to the end of the tenancy. Having regard…

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Details
Case
[2022] NSWCATCD 79
Decision Date

CaseChat Overview and Summary

In the case of Moroko v Cojay Holdings Pty Ltd, Daniel Moroko and Joseph Pamment, as tenants, sought relief under the Residential Tenancies Act 2010 (NSW) against Cojay Holdings Pty Ltd, the landlord. The tenants contended that the rent charged was excessive due to a reduction in the quality and quantity of goods, services, and facilities provided with the residential premises. The dispute arose from a variation to the residential tenancy agreement dated 23 June 2021, which the tenants claimed included prohibited terms that contravened the Act. The case was heard in the NSW Civil and Administrative Tribunal.

The primary legal issues the court needed to address were whether the terms in the variation to the residential tenancy agreement were indeed prohibited under the Act and, if so, whether the reduction in services and facilities justified a finding that the rent was excessive. The court was required to interpret the relevant provisions of the Act and assess the evidence presented regarding the state of the premises and the services provided.

The court found that clauses 2.1(d) and (e) of the variation agreement were void as they constituted prohibited terms under the Act, which prevent contracting out of certain rights. The tribunal also ruled that the rent was excessive due to the significant reduction or withdrawal of services and facilities by the landlord. This included issues such as the lack of hot water, inadequate heating, and the presence of mould, all of which substantially affected the tenants' living conditions. As a result, the court determined that the rent should not exceed $770.00 for the specified period. Furthermore, the landlord was ordered to pay the tenants compensation for the deficiencies in the services provided.

In summary, the tribunal voided certain clauses of the tenancy agreement, ruled that the rent was excessive, and ordered the landlord to pay compensation to the tenants. This decision underscores the importance of landlords adhering to the provisions of the Residential Tenancies Act and providing adequate services to tenants.

Orders

Orders of the court

(1) Clauses 2.1(d) and (e) of the variation to the residential tenancy agreement dated 23 June 2021 are void and of no effect.

(2) The rent payable for the premises was excessive for the period 6 April 2021 to 1 March 2022 and must not exceed $770.00 during this period.

(3) Cojay Holdings Pty Ltd must pay Daniel Moroko and Joseph Pamment $14,143.00 immediately.

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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