Supreme Court decision ends leaky-home bids
Thursday 28 June 2012
Auckland Council says a decision by the Supreme Court proves ratepayer-funded settlements in leaky home disputes will not be reduced by contributions from the Crown.
By Susan Edmunds
The former North Shore City Council has had its long-running bid for Government compensation for a group of leaky buildings denied by the Supreme Court.
The council’s attempt to win compensation for a 1999 project, The Grange, in Albany was struck out yesterday.
The development used monolithic cladding over untreated timber framing.
The Council, now part of Auckland Council, said it was given a false sense of security by the since-abolished Building Industry Authority, which reviewed its building inspection practices.
A Court of Appeal bid failed in 2010.
The Government and councils are each offering 25% of leaky home repair costs through a Financial Assistance Package established last year.
In return, the homeowner gives up the right to sue either party.
The Supreme Court said the Authority had no statutory "duty of care" to provide oversight of the council despite its regular reviews.
It essentially found the Council was responsible for its own neglicence in not implementing the building code to a high-enough standard.
Comments from our readers
No comments yet
Sign In / Register to add your comment
House Prices
No stopping Capital price rises
There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Commercial
Demand challenges for commercial sector
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
Mortgages
LVR loosening likely - ANZ
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.
