The lease just ended on a house I was living in. I was on the lease with two other people; L & D. L had a friend who was living 'downstairs' in the garage and was paying rent and part of the electricity and water bills. This friend, however, was not on the lease. The living agreement for this friend was only a verbal agreement, and was made before D and I moved in. As requested by the Real Estate Agents, we had to pay our rent fortnightly from one account. L had nominated that everyone pay rent into her account so that she can keep track of it and have control. So every fortnight, we all paid our agreed amount onto L's account and she paid the real estate. Unbeknownst to D and me, L stopped checking her account sometime around November 2015. Which meant she stopped keeping track of who was paying rent, etc. Her friend that was living downstairs stopped paying rent and bills around this time, too. L didn't realise that her friend wasn't paying rent until mid-January when the friend decided to move out. Our rent is all up-to-date with the real estate, and the tenant ledger has been finalised, so legally, the lease agreement has been fulfilled. Naturally, L is wanting her friend to pay her back, but she is unable to get in touch with her to get her. Because L can't get in touch with her friend, L is now seeking that D and I compensate her for the money her friend owes her, based on the fact that D and I were on the lease. D and I have refused to pay her as it's not money we owe. Now she is threatening to take us to Small Claims Court despite the fact that we paid our agreed rent amount. My question is this, does L have any legal basis to take D and I to Small Claims court?