Residents and owners of a leaky building in Auckland have won the right to continue with a legal claim against the council.
The building in Takapuna, known as Spencer on Byron, leaks.
It is mainly a hotel, but it also has six penthouse apartments.
Owners of the building, as well as the body corporate, took legal action in the High Court, claiming the then North Shore City Council had been negligent and was liable for the cost of repairs.
The council applied to strike out the claims, claiming councils only owed a duty of care in respect to residential buildings - not buildings of a mixed residential-commercial nature.
The Court of Appeal accepted the council's submission, while rejecting the owners' claims.
However, the owners appealed to the Supreme Court which, in a ruling released today, found by majority decision that their claim should not have been struck down.
Looking at past judgements and the Building Act, the court found councils did have a duty of care to building owners, regardless of the building's use.
- © Fairfax NZ News
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