Glazier - Complaint No C04384 [2015] NZREAA 105 (5 May 2015)

Last Updated: 7 February 2016

In the Matter of Part 4 of the Real Estate Agents Act 2008

And

In the Matter of Complaint No: C04384

In the Matter of Denise Glazier

License Number: 10007493

Decision of Complaints Assessment Committee

Dated this 5th day of May 2015

Complaints Assessment Committee: CAC 302

Chairperson: Alison Wallis

Deputy Chairperson: Deborah Clapshaw

Panel Member: Sue Matehaere-Patten

Complaints Assessment Committee

Decision on orders

1. Decision on orders

1.1. On 22 January 2015 the Complaints Assessment Committee (the Committee) found Denise

Glazier (the Licensee) guilty of unsatisfactory conduct under section 89(2)(b) of the Act.

1.2. The Complainants and the Licensee were given the opportunity to make submissions to the

Committee on orders.

2. Orders

2.1. Having made a finding of unsatisfactory conduct against the Licensee, the Committee decided to order that the Licensee:

2.1.1. That the Licensee pays a fine to the Authority of $1000.00 within 21 working days of this decision.

2.1.2 That the Licensee under-go further training by completion of the following Unit

Standard within three months of the date of this decision:

• US26148 Demonstrate knowledge and use of inspection, appraisal and agency agreement for real estate property
  

3. Our reasons

3.1. The Licensee has made submissions via her legal counsel, Mr. W. These submissions are extensive as to the law and we will comment on these below, but the further comments made do not assist the Committee greatly in terms of making a penalty decision, because they focus (in the main) on the substantive finding of unsatisfactory conduct. They are not focused on factors which are mitigating or which would suggest leniency on the facts before us.

3.2. The Complainants seek compensation of $10,000 and suggest that the Licensee be required to carry out some further training. The Complainants also note that the Licensee has had a prior complaint against her upheld, which related to her integrity and honesty. They suggest that because of this a heavy fine, retraining and publication are appropriate here as a deterrent against future rule breaches.

3.3. The Complainants also suggest that a finding of misconduct would be appropriate. That is not a finding which the Committee has the power to make, and in any event, the issue at hand now is not the substantive issue but is limited to consideration of penalty.

3.4. The Licensee’s submissions suggest that the prior finding of unsatisfactory conduct is not relevant here. The Committee disagrees. The Committee is entitled to take this into account when making findings on penalty, in particular where there is some similarity of fact.

3.5. The Committee does note here however, that the finding of unsatisfactory conduct was a

difficult one to arrive at, that the evidence was complex and somewhat blurred around the key aspects of the complaint. The Committee on balance of probabilities preferred the evidence supporting the Complainants but has taken into account these considerations.

3.6. Compensation: The Licensee submits that it is not open to the Committee to make such an order. The Committee agrees. The submissions for the Licensee relate to the High Court case of Quin & Baras [2012] NZHC 3557 (“Quin”). The discussion in the High Court in Quin states that s93 (1) (f) empowers the Committee to make orders directed at the taking of actions, to order a Committee to do something to put right or correct an error. Quin makes it clear that a Committee’s powers do not extend to payments in the nature of compensatory damages, which is effectively what the Complainants here are asking for, and accordingly no order is made in relation to this.

3.7. Fine: The Committee has taken into account the comments by the Complainants that there should be a heavy fine. The Committee does not agree in this case that the fine should be heavy, taking into account the evidentiary issues, regardless of the prior conduct. A modest fine has therefore been ordered.

3.8. Further training: The Committee agrees with the Complainants that further training is indicated here. The issue could have been eliminated had the listing documentation included the detail that was necessary.

3.9. Publication: This is usual in such findings and the Committee agrees with the Complainants that publication, as usual, is appropriate here in the public interest.

Principles considered

3.10. When determining whether or not to make an order under Section 93(1), the Committee has also had regard to the functions which the imposition of a penalty usually must serve in professional disciplinary proceedings.

a. promoting and protecting the interests of consumers and the public generally (section

3(1))

b. maintaining professional standards

c. punishing offences

d. rehabilitating the professional.

3.11. The Committee acknowledges that, when making an order under Section 93, the order/s made must be proportionate to the offending and to the range of available orders.

a. Promo ting and pro tect ing t he interests o f co nsum ers and t he public

3.12. Section 3(1) of the REAA sets out the purpose of the legislation. The principal purpose of the Act is "to promote and protect the interests of consumers in respect of transactions that relate to real estate and to promote public confidence in the performance of real estate agency work."

3.13. One of the ways in which the Act states it achieves this purpose is by providing accountability through an independent, transparent and effective disciplinary process (Section 3(2).

b. M aintaining pro fessio nal standards

3.14. This function has been recognised in professional disciplinary proceedings involving other professions (for example, in medical disciplinary proceedings: Taylor v The General Medical

Council (1990) 2 A11 ER 263; and in disciplinary proceedings involving valuers: Dentice v The

Valuers Registration Board [1992] 1 NZLR 720).

3.15. Although different professions use different descriptions of the nature of the unprofessional or incompetent conduct that will attract disciplinary charges, there is a common thread of scope and purpose. The aim is to enforce a high standard of propriety and professional conduct. Professions seek to:

• make sure that no person unfitted because of his or her conduct is allowed to practise the profession in question

• protect both the public and the profession itself against persons unfit to practice

• enable the profession or calling, as a body, to ensure that the conduct of members conforms to the standards generally expected of them.
  

3.16. In the Committee's view, maintaining professional standards is also a function of the disciplinary processes under the Real Estate Agents Act 2008.

c. P unishm ent

3.17. The Committee accepts that a penalty in a professional discipline case is primarily about maintaining standards and protecting the public. However, in the Committee's view there is also an element of punishment – indicated by the power the Committee has to impose a fine (Section 93(1)(g); or make an order of censure (Section 93(1)(a)). The element of punishment has been discussed in the context of other professional disciplinary proceedings (see Patel v Dentists Disciplinary Tribunal (High Court, Auckland, CIV 2007-404-1818 Lang J 13 August

2007).

3.18. At paragraph [27]-[28], the judge said:

“Such penalties may be appropriate because disciplinary proceedings inevitably involve issues of deterrence. They are designed in part to deter both the offender and others in the profession from offending in a like manner in the future. I therefore propose to proceed on the basis that, although the protection of the public is a very important consideration, nevertheless the issues of punishment and deterrence must also be taken into account in selecting the appropriate penalty to be imposed...”

d. Where appro priate, rehabilitatio n o f t he pro fessional m ust be co nsidered

3.19. The Committee regards its power to make an order requiring a Licensee to undergo training or education (Section 93(1)(d)) as indicating that rehabilitation is a function of professional disciplinary processes under the Act.

4. What happens next

Your right to appeal

4.1. If you are affected by this decision of the Committee, you may appeal in writing to the Real Estate Agents Disciplinary Tribunal (the Tribunal) within 20 working days after the date of this decision. Your appeal must include a copy of this decision and any other information you wish the Tribunal to consider in relation to the appeal (Section 111).

4.2. For further information on filing an appeal, read Guide to Filing an Appeal at M inistry o f

Justice-Tribunals ( ww w.justice. go v t.nz/ tribunals ).

Publication

4.3. The Committee directs publication of its decision. The decision will be published without the names or identifying details of the Complainant (including the address of the Property), and any third parties. The decision will state the name of the Licensee and the Agency they work for or worked for at the time of the conduct.

4.4. Publishing the Committee’s decision supports the purpose of the Act by ensuring that the disciplinary process remains transparent, independent and effective. The Committee also considers that publishing this decision helps to set standards and that is in the public interest.

Signed

Alison Wallis

Chairperson

For Complaints Assessment Committee 302

Real Estate Agents Authority

Date: 5 May 2015

Appendix 1: Relevant provisions

The Real Estate Agents Act 2008 provides:

Section 89 Power of Committee to determine complaint or allegation

(1) A Committee may make one or more of the determinations described in subsection (2) after both inquiring into a complaint or allegation and conducting a hearing with regard to that complaint or allegation.

(2) The determinations that the Committee may make are as follows:

(a) a determination that the complaint or allegation be considered by the

Disciplinary Tribunal:

(b) a determination that it has been proved, on the balance of probabilities, that the licensee has engaged in unsatisfactory conduct:

(c) a determination that the Committee take no further action with regard to the complaint or allegation or any issue involved in the complaint or allegation.

(3) Nothing in this section limits the power of the Committee to make, at any time, a decision under section 80 with regard to a complaint.

Section 72 Unsatisfactory conduct

For the purposes of this Act, a licensee is guilty of unsatisfactory conduct if the licensee carries out real estate agency work that—

(a) falls short of the standard that a reasonable member of the public is entitled to expect from a reasonably competent licensee; or

(b) contravenes a provision of this Act or of any regulations or rules made under this Act;

or

(c) is incompetent or negligent; or

(d) would reasonably be regarded by agents of good standing as being unacceptable.

Section 93 Power of Committee to make orders

(1) If a Committee makes a determination under section 89(2)(b), the Committee may do one or more of the following:

(a) make an order censuring or reprimanding the licensee;

(b) order that all or some of the terms of an agreed settlement between the licensee and the complainant are to have effect, by consent, as all or part of a final determination of the complaint;

(c) order that the licensee apologise to the complainant; (d) order that the licensee undergo training or education;

(e) order the licensee to reduce, cancel, or refund fees charged for work where that work is the subject of the complaint;

(f) order the licensee:

(i) to rectify, at his or her or its own expense, any error or omission; or

(ii) where it is not practicable to rectify the error or omission, to take steps to provide, at his or her or its own expense, relief, in whole or in part, from the consequences of the error or

omission;

(g) order the licensee to pay to the Authority a fine not exceeding $10,000 in the case of an individual or $20,000 in the case of a company;

(h) order the licensee, or the agent for whom the person complained about works, to make his or her business available for inspection or take advice in relation to management from persons specified in the order;

(i) order the licensee to pay the complainant any costs or expenses incurred in respect of the inquiry, investigation, or hearing by the Committee.

(2) An order under this section may be made on and subject to any terms and conditions that the Committee thinks fit.

Section 111 Appeal to Tribunal against determination by Committee

(1) A person affected by a determination of a Committee may appeal to the Tribunal against a determination of the Committee within 20 working days after the date of the notice given under section 81 or 94.

(2) The appeal is by way of written notice to the Tribunal of the appellant's intention to appeal, accompanied by—

(a) a copy of the notice given to the person under section 81 or 94; and

(b) any other information that the appellant wishes the Tribunal to consider in relation to the appeal.

(3) The appeal is by way of rehearing.

(4) After considering the appeal, the Tribunal may confirm, reverse, or modify the

determination of the Committee.

(5) If the Tribunal reverses or modifies a determination of the Committee, it may exercise any of the powers that the Committee could have exercised.