Cost could be $27m

Council's legal services manager Denis Sheard says the eight figure sum is a worst case scenario outlined in a report prepared by staff. There are 91 outstanding cases against the council before the Weathertight Homes Resolution Service.

Mr Sheard is unable to quantify the total amount of the claims but says the local authority fears liability for the problem is too often falling on councils.

"Naturally we're concerned about it. Anyone would be in these circumstances," he says.

The council, which signs off building work, can be made liable under New Zealand law when other parties, including developers and builders, have gone into liquidation.

The claimant is legally entitled to seek full payment from the "last one standing".

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