The government has warned leaky building owners that a new court ruling holding councils responsible does not mean legal action is the best option.Building and Construction Minister Maurice Williamson says the government assistance scheme, which apportion
The government has warned leaky building owners that a new court ruling holding councils responsible does not mean legal action is the best option.
Building and Construction Minister Maurice Williamson says the government assistance scheme, which apportions costs among the government, councils and owners, remains the cheapest and most effective way to get their homes repaired.
The Supreme Court ruled on Friday that the former the North Shore City Council held a duty of care that buildings it approved were not faulty. The action was brought by the owners of two apartment buildings and had been upheld in both the High Court and Court of Appeal.
North Shore, which is now part of the new Auckland Council, had sought to deflect responsibility due to the high cost of liability, which opened up the possibility of ratepayers throughout the country facing a bill of billions of dollars for negligence.
Despite the ruling, Mr Williamson has urged leaky home owners to go through the government scheme and not the courts, due to the high legal costs.
The government scheme is free to complainants and provides for the government and councils to pay half the cost of leaky home claims.
Groups backing leaky home complainants have welcomed the court ruling, saying it allows actions against councils where they have been negligent in approving leaky buildings.
The ruling also clarifies the rights of owners in multi-unit buildings.
