Tribunal forced to rehear case

"This judgement is significant for all residential landlords," Housing New Zealand's operations director Celia Patrick said.

"It quashes a ruling by the Tenancy Tribunal that, if left in place, could have altered the legal balance between a tenant's rights and a neighbour's rights."

Housing New Zealand attempted to terminate the tenancy at 39 Rangeview Road last year because people associated with the tenancy were causing significant disruption to the neighbourhood. The tribunal refused to grant the tenancy termination order after a lengthy hearing.

Patrick said Housing New Zealand appealed the Tribunal's ruling to the District Court arguing that the Tribunal had significantly erred in the way it had run the hearing, and in the way it had applied the law.

"The decision to take that appeal has been vindicated," she said.

"The court has found the Tribunal was wrong in the way it applied the law, and the way it ran the hearing. The judgement has provided valuable guidance on what the Tribunal needs to consider in any future cases when deciding if a tenant's behaviour is causing significant disturbance to the neighbourhood.