The High Court’s unanimous decision against the Northern Territory Government earlier this week could have far-reaching consequences for renters Australia-wide.
Seven years after residents of a remote Central Australian community (Santa Teresa) initially launched legal action, the High Court has concluded that the NT Government is liable for compensation to tenants for ‘distress and disappointment’ caused by living in unhabitable rental properties.
The High Court’s latest result overturned a previous ruling that deemed tenants were not entitled to compensation for the impact the lack of repairs had on them.
Class action pending
It’s understood the lead applicant (now deceased) lived without a back door for more than five years, which resulted in snakes entering the building.
An additional 70 other households complained of myriad issues, including leaking sewage and unstable electricity.
Australian lawyers for Remote Aboriginal Rights (ALRAR), who handled the case (with support from Grata Fund), believe the new ruling could give tenants a new way of bringing cases against landlords that breach tenancy agreements.
In collaboration with compensation lawyers Slater and Gordon, ALRAR yesterday announced that it is already corralling interest in a potential class action to seek improvements to public housing in remote communities and financial compensation for the affected Aboriginal tenants.
Fight for better housing
ALRAR solicitor Dan Kelly believes the ‘deplorable’ state of housing in remote communities, impacts health and wellbeing and shouldn’t be tolerated in a country as wealthy as Australia.
“As it stands, legal action is the only way remote communities can enforce their basic rights to habitable housing,” he said.
What’s most important to clients notes Kelly is the fight for better housing, not just for Santa Teresa, but for all remote communities in the country.
“I’m deeply saddened for the family of two tenants who led this case, Ms Young and Mr Conway, who, like Eddie Mabo, did not live to see their fight deliver better outcomes for their community”.
He called on the Northern Territory Government to address how it would adequately compensate tenants over the state of housing across the jurisdiction.
Secondary claims
After visiting a number of sites firsthand, Slater and Gordon class actions senior associate, Gemma Leigh-Dodds, confirmed that tenants “have been living in substandard housing where water doesn’t comply with regulatory guidelines, significant infrastructure issues, sewerage and security issues, and a lack of air conditioning”.
What the class action hopes to clarify is whether group members can make secondary claims under the Australian Consumer Law and the Racial Discrimination Act for offering a disadvantageous service on the basis of race.
Assuming the answer is yes, future claims are expected to seek damages for breaches of contract, including repayment of rent, the inconveniences suffered by tenants, any incurred expenses by tenants to fix problems in the house, and disappointment and distress caused by the housing issues.
Image: The High Court of Australia
