The Press

Landlord who housed tenant in ‘dangerous’ building loses appeal

- Mariné Lourens

A Christchur­ch businessma­n has been ordered to pay almost $10,000 in damages after renting out “sleeping quarters” in a dangerous commercial building.

Gary Gray, owner and sole director of Dr Concrete, has lost his appeal against a Tenancy Tribunal decision that found he was in gross breach of his obligation to provide safe and healthy residentia­l accommodat­ion.

Gray operates his business from a commercial premises in Waltham. Since at least 2016, he began building sleeping quarters inside the property, which he told the tribunal he occupied personally and also let to two other residents in a “boarding arrangemen­t”.

According to the tenant, he lived there from June 2019 to February 2020.

He said he and Gray had a residentia­l tenancy agreement, but it was not recorded in writing. The tenant said he provided fulltime general labour for Gray in exchange for four hours’ pay per week and accommodat­ion at the property, valued at $200 weekly.

The Tenancy Tribunal heard that Gray built a mezzanine floor without building consents. It was likely it did not meet the standards of the Building Code, and the building had no fire alarm system, and lacked escape routes and fire exits.

Despite this, flammable material was stored directly below the residentia­l units.

“The deliberate and blatant breaches ... put the lives of vulnerable people at risk.”

Judge Chris Tuohy

In February 2021, an investigat­ion team from the Ministry of Business, Innovation and Employment (MBIE), along with staff from the Christchur­ch City Council and Fire and Emergency New Zealand (Fenz), visited the premises after receiving a complaint from the public.

In a statement, MBIE said it found several people “living in substandar­d conditions on the mezzanine floor area constructe­d by Mr Gray”.

The council issued a dangerous building notice as a result.

During a tribunal hearing, Gray denied that the tenant was living there. He said they had discussed the option of moving in, but it never happened.

He admitted that other people had been living in the building, but said it was a “boarding arrangemen­t” and not a residentia­l occupancy – and that either way, the applicatio­n before the tribunal only concerned the alleged tenant and not the other occupants.

The tribunal did not accept this, and ordered Gray to pay $3600 in exemplary damages and $6000 in reimbursem­ent of rent.

Gray appealed the decision to the District Court, claiming that the tribunal erred in finding the complainan­t was a tenant, in determinin­g that Gray was the landlord (he said the landlord was in fact his company, Dr Concrete), in not subtractin­g the tenant’s accommodat­ion supplement from the rent paid, and in fixing the quantum of damages.

Judge Chris Tuohy was not convinced. He said a witness called on Gray’s behalf to testify that the complainan­t was not living at the property actually did the exact opposite, by describing and locating the room the complainan­t occupied.

He said Gray’s argument that the landlord was Dr Concrete and not him was not sustainabl­e, given “Dr Concrete is a oneman company, which is nothing but his alter ego”.

The judge said that if the tenant had received an accommodat­ion supplement from the Ministry of Social Developmen­t, there was no reason Gray should be credited with it.

Judge Tuohy added that if he could have ordered Gray to pay even more in damages, he would have.

“The deliberate and blatant breaches of fire safety and other provisions put the lives of vulnerable people at risk. The maximum amount of exemplary damages of $4000 is ludicrousl­y inadequate.”

The Press has approached Gray for comment.

 ?? ?? A photo taken by MBIE investigat­ors when they visited the site in February 2021 and found people living in “substandar­d conditions” on a mezzanine floor area constructe­d by Gary Gray.
A photo taken by MBIE investigat­ors when they visited the site in February 2021 and found people living in “substandar­d conditions” on a mezzanine floor area constructe­d by Gary Gray.
 ?? ?? MBIE investigat­ors found “several people” living in makeshift units inside the building in February 2021.
MBIE investigat­ors found “several people” living in makeshift units inside the building in February 2021.

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