A Court of Appeal has ruled that tenants who damage rented properties are not necessarily liable for the same.

The court has said that the tenants don't necessarily have to cover the costs of damage to the property caused by them or those invited into the house by them. The ruling came is a case that has gone on for years and involved a dispute over fire damage to a property.

Kenji and Tieko Osaki rented a house form Andreas Holler and Katharine Rouse and lived there with their children. On the day of the incidence in March 2009, Tieko had poured oil into the pot and put it on high heat causing fire in the premises. She left the oil on the stove for five minutes and in that time the fire started and caused substantial damage to the house. The owners of the house had insurance with AMI that covered the $216,000 cost of the repairs.

However, the insurance company approached the High Court, under the owner's names urging the tenants to pay them the amount. The tenants argued that it was not the right court to hear the matter. The matter was sent to the Tenancy Tribunal and the legal dispute has continued for as many as seven years. The Appeal Court examined relevant sections of the Property Law Act concerning damage, the intention of Parliament, Law Commission reports and earlier rulings of the Tenancy Tribunal and High Court and concluded that tenants are not liable for the damage.