Auckland's Harbour Oaks tower on Gore St near the Britomart area. Its owners brought a $150 million High Court claim relating to defects in the building. Photo / Natalie Slade
Auckland's Harbour Oaks tower on Gore St near the Britomart area. Its owners brought a $150 million High Court claim relating to defects in the building. Photo / Natalie Slade
A 469-page decision from the High Court at Auckland has upheld some claims against Auckland Council for its role in the 40-level Harbour Oaks apartment and hotel tower but no sums were awarded in the owners’ $150 million claim.
The tower, also known as the Gore Street apartments,was built from 2004 to 2006 but has extensive defects, the decision says.
So two years ago, unit title owners in the 406-unit tower sued parties they blamed for the defects, claiming they had breached duties of care owed to the owners.
The case was brought by Body Corporate 366567 and Amer Ltd, who were represented by Grimshaw & Co partner Gareth Lewis with Grant Illingworth KC and others.
They alleged that the council’s predecessor failed to exercise reasonable skill and care in performing its three regulatory functions: consenting, inspection and code compliance.
Justice Tracey Walker heard the case from May to October 2022.
The council, whose legal team was led by Christine Meechan KC, accepted that it owed a duty of care to the owners of units, although not to the body corporate.
The council did not accept that all pleaded defects existed or that the physical state of affairs resulted in a building that did not comply with the Building Code.
Hearings took five months. More than 55 expert witnesses gave evidence in quantity and building surveying, fire and structural engineering, software modelling, conveyancing, accounting and acoustic engineering.
They filed thousands of pages of briefs of evidence before trial, some of which referred to exhibits that comprised many thousands of pages. The trial generated more than 5000 pages of transcribed notes of evidence.
There are 13 claimed defects. They fall into four broad categories, although some categories overlap. Those are fire, structure, internal and external moisture.
No amounts have yet been awarded in the case between the owners of this Harbour Oaks building and the council. Photo / Natalie Slade
Some defects, although pleaded as a single claimed defect, comprised many sub-defects.
The owners’ case was originally against the council, Clark Brown Architects (in liquidation), PM Developments (struck off), Equus Industries, Mapei New Zealand (in liquidation), Aquastop, Charles Norager & Son (in liquidation), Holmes Fire & Safety, Firepel Kidd, MacDonald Barnett Partners (discontinued), Holmes Structures (discontinued), Chenery Contracting, Zurich Australian Insurance (claim discontinued), Brookfield Multiplex Constructions (NZ) (in liquidation) and De Boer Waterproofing Solutions NV (discontinued).
The principal contractor, Multiplex Constructions (NZ), went into liquidation before the claim was filed.
As the case progressed, some named defendants also went into liquidation and claims against them were discontinued. Others settled claims against them before the trial.
Only three defendants attended the trial when it started but even that number was cut back: one settled during the trial, leaving only Auckland Council and Equus Industries – the supplier of membrane on the podium and level three canopy roof – actively defending their cases.
The claim sought the cost of remediation, estimated at $120m, plus consequential losses suffered by the owners and general damages, bringing the overall damages claim to more than $150m.
The liability findings mean that the cost of repair and other monetary consequences claimed against the liable parties have not yet been determined.
The findings will significantly impact the scope of proposed repair for which some defendants may be liable.
The court has invited further submissions from the parties to resolve those matters.
The council, the owners or both parties can appeal to the Court of Appeal.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
