Property

Drug case outcome sets the bar

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.

Thursday, April 16th 2009

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.

Unity First Home Buyer special 3.99
ICBC 4.25
SBS FirstHome Combo 4.29
Co-operative Bank - First Home Special 4.35
TSB Special 4.39
Co-operative Bank - Owner Occ 4.45
ANZ Special 4.49
ASB Bank 4.49
SBS Bank Special 4.49
Unity Special 4.49
Westpac Special 4.49
Westpac Special 4.45
SBS Bank Special 4.49
BNZ - Std 4.49
TSB Special 4.49
Kiwibank Special 4.49
ANZ Special 4.49
AIA - Go Home Loans 4.49
ASB Bank 4.49
Co-operative Bank - Owner Occ 4.49
ICBC 4.59
Wairarapa Building Society 4.59
SBS Bank Special 4.99
Westpac Special 4.99
ICBC 4.99
BNZ - Std 4.99
AIA - Go Home Loans 5.15
ASB Bank 5.15
Co-operative Bank - Owner Occ 5.19
ANZ 5.39
TSB Special 5.39
Kiwibank Special 5.39
Kainga Ora 5.49
SBS FirstHome Combo 3.29
AIA - Back My Build 3.34
SBS Construction lending for FHB 3.74
CFML 321 Loans 3.95
Co-operative Bank - Owner Occ 4.99
Co-operative Bank - Standard 4.99
Heartland Bank - Online 5.30
ICBC 5.39
Kiwibank - Offset 5.65
Kiwibank 5.65
ANZ 5.69

More Stories

Buyers sitting on the sidelines in best time to buy in a decade

Thursday, December 04th 2025

Buyers sitting on the sidelines in best time to buy in a decade

Stable house prices, low interest rates and plenty of houses to choose from are still not enticing buyers.

Differing views on 50-year mortgage

Tuesday, December 02nd 2025

Differing views on 50-year mortgage

US president Donald Trump recently raised the idea of 50 year mortgages; but New Zealand advisers say such long loans won’t take off in New Zealand.

Houses selling at a loss hit a 12 year high

Wednesday, November 26th 2025

Houses selling at a loss hit a 12 year high

About one in five Auckland residential properties (19.3%) sold for less than their original purchase price in the third quarter, up from up from 15.9% in the second quarter.

OCR Preview: How far is far enough for the RBNZ?

Friday, November 21st 2025

OCR Preview: How far is far enough for the RBNZ?

Economists expect the OCR to drop another 0.25% to 2.25% next week, with a 50/50 chance of another cut in February.