Victory for leaky home owners

Owners of leaky homes have had a significant victory in their battle against local councils after the Court of Appeal ruled in two cases today, lawyers for the homeowners say.

The appeal court ruled in favour of owners of leaky apartments in two developments against North Shore City Council.

The court ruled that contrary to the council's arguments it did owe a duty of care to owners in large scale developments. The court ruled that the onus was on the council to ensure the buildings complied with the building code but the council's inspector had failed to notice and respond to deficiencies.

The Court of Appeal began hearing the appeals on High Court decisions about the two North Shore multi-unit properties in September last year.

They are the 12-unit Byron Ave apartments in Takapuna and the 21-unit Sunset Terraces in Mairangi Bay.

Both complexes suffered badly from leaks and the owners have had long battles through the courts to win awards.

After the High Court found in the owners' favour awarding them millions, North Shore City Council which was expected to meet the costs in both cases, went to the Court of Appeal.

Lawyers for the owners, Grimshaw and Co, said in the Byron Avenue decision the Court of Appeal upheld High Court awards to the body corporate and the 12 owners of over $2 million and increased the general damages awards for distress and anxiety to $25,000 in the case of resident owners and $15,000 for investor owners.

In Sunset Terraces, the Appeal Court upheld the decision against the council in favour of townhouse owners, and also overturned the High Court ruling against a group of claimants who took assignments of the rights of those owners who were part of an investment group. The court also found in favour of one owner who claimed against an architect, on the basis the architect negligently issued a practical completion certificate.

The lawyers said it was likely the council would appeal both decisions to the Supreme Court.

- NZPA