Property developer Greg Nielsen who built leaky Auckland townhouses 10 years ago has lost a Supreme Court case, leaving him liable for more than $1.4 million and facing bankruptcy.Mr Nielsen developed townhouses at Parnell's Laxon Terrace in 1999 and 2000
Property developer Greg Nielsen who built leaky Auckland townhouses 10 years ago has lost a Supreme Court case, leaving him liable for more than $1.4 million and facing bankruptcy.
Mr Nielsen developed townhouses at Parnell’s Laxon Terrace in 1999 and 2000 using untreated timber that ended up leaking.
The owners banded together and sued Auckland City Council, which had to pay out more than $1.19 million in remedial costs.
The council took assignment of the rights of the body corporate and townhouse owners and in a High Court case Justice Paul Heath said Mr Nielsen had to pay council back the $1.19 million.
The developer struggled to get legal representation including a bid for legal aid being rejected, and tried to appeal the decision in March but it was struck out because the appeal process had taken so long.
During this time interest added up and the amount he owed council ballooned to more than $1.4 million and the council applied to bankrupt him because nothing had been paid.
Mr Nielsen appealed the Court of Appeal’s decision to strike out his application, which delayed the council’s bid to bankrupt him but the Supreme Court has dismissed Mr Nielsen’s application and added further to his bill with $2500 costs.
“It is not shown that he had anyone to blame for his current predicament other than himself,” the Supreme Court said.
The council can now give Mr Nielsen seven days’ notice before its application to bankrupt him goes back to court.
Last year, Mr Nielsen sought to have his brother and ex-business partner Rod Nielsen bankrupted but Bridgecorp's successful application was heard first.
