Drug case outcome sets the bar

Thursday 16 April 2009

The outcome of a recent drug case has set the legal bar for landlords to deal with drugs being manufactured by tenants, or friends of tenants, in their rental properties.

By The Landlord

Housing New Zealand (HNZ) has won a test case seeking more than $180,000 in damages from a drug ring which manufactured methamphetamine in a Napier state house, causing the house to be destroyed.

Nine members of the drug ring, plus the state tenant were found liable for the damage caused by the P lab.

The judgment has broad reaching implications for all landlords.

“P labs are an issue all landlords struggle with. The civil suit Housing New Zealand has won sets a precedent which can be used by private landlords as well,” Housing Minister Phil Heatley says.

 “The court has taken a hard line in this case, finding that even the 10th defendant, who brought one container of an industrial solvent used in the methamphetamine manufacturing process to the property, is also liable for all the damage to the home,” he says.

It is hoped the outcome of this case will send a very clear message to anyone involved in manufacturing drugs that not only will they face criminal charges, they will also be liable for the damage to someone else’s property.

“HNZ is now pursuing the damage costs from the parties in the Napier case and will bankrupt those parties if it is in the taxpayer’s best interest,” Heatley says.

Commenting is closed

House Prices

High demand keeps pushing prices up

Treasury might be expecting house prices to fall - but market data suggests otherwise, with Trade Me Property’s August data the latest to show rising prices and high demand.


Augusta Capital takeover bid now unconditional

ASX-listed Centuria Capital has declared that its takeover of New Zealand property funds manager Augusta Capital is now unconditional, as it has secured nearly 66% of Augusta’s shares.


What the Reserve Bank's latest move means for housing

The Reserve Bank’s programme to lend directly to retail banks could be ready soon. If it is, that’s likely to mean lower interest rates on loans – and more support for the housing market.

Site by PHP Developer