A Christchurch businessman who rented out part of a dangerous commercial building for employees to live in has had his Tenancy Tribunal appeal thrown out.
Gary Gray predominantly used the premises on Talfourd Pl to operate his business, Doctor Concrete.
However, in December 2021, the tribunal found he had breached the Residential Tenancies Act by renting areas of the building as a residential rental.
One employee was renting a makeshift unit on a mezzanine floor in the building, which the City Council had issued a dangerous building notice.
Gray was ordered to pay $9620 in exemplary damages, reimbursement of rent and costs to the Ministry of Business, Innovation and Employment (MBIE), on behalf of the affected tenant.
It came after a site visit by MBIE's Tenancy Compliance and Investigations Team (TCIT), the Christchurch City Council and Fire and Emergency New Zealand (FENZ) in February 2021 where a number of people were found to be living in substandard conditions in an area constructed by Gray.
The tribunal found Gray had committed an unlawful act intentionally and over an extended period of time, in that he failed to comply with all requirements in respect of building, health and safety under enactments that apply to the address.
The Adjudicator also ruled that the premises were unlawful and should not have been occupied.
Substandard conditions
It was established that no building consents had been obtained for the building work and it was unlikely to comply as the building did not meet the standards of the Building Code.
It was also noted that there was flammable material stored directly below the residential areas. The building had no fire alarm system and lacked escape routes and fire exits.
Tenancy Compliance and Investigations Team national manager Brett Wilson the Adjudicator highlighted in his findings that Gray was aware from 2017 of the unlawfulness of his arrangements in using the building for residential use.
"The Adjudicator also highlighted Mr Gray’s efforts to impede the investigation and said he found it difficult to conceive a more significant and sustained breach of the Residential Tenancies Act," he added.
While acknowledging that others had lived at the address, Gray disputed that the tenant who initially raised the complaint was one of them.
He appealed the tribunal's decision and an appeal hearing was heard by Judge Tuohy at the District Court in Christchurch on December 14.
Judge Tuohy dismissed the appeal after a witness - intended to be the main plank of Gray's defence - had the opposite effect, causing him to conclude that the tenant had undoubtedly been a tenant residing at the premises.
Wilson said he was pleased the original ruling was upheld.
"Judge Tuohy highlighted that Mr Gray was the landlord and that the deliberate and blatant breaches of fire safety and other provisions put the lives of vulnerable people at risk," he said.
On 12 March, MBIE was awarded further costs of $3000 in defending the tribunal decision.
