Top executive in leaky building row

The retired boss of New Zealand's largest supermarket chain is fighting accusations from two former Goldcorp directors that he sold them a leaky home worth $2.2 million in Paritai Drive.

Ross and Dallas Pendergrast bought the four-bedroom, three-bathroom house from ex-Progressive Enterprises head Ted van Arkel and his wife Wendy in March.

When renovations started they discovered their four-year-old house leaked badly.

"The internal linings were so saturated that I was able to push through the gib board in the bedroom with my index finger," one witness said.

It is estimated repairs could cost up to $300,000 and the Pendergrasts think the van Arkels should pay.

The van Arkels' lawyer was unable to comment yesterday, saying his client had not instructed him to do so.

But affidavits filed with the High Court show the dispute centres around a building report the van Arkels commissioned on their house and passed on to the Pendergrasts at their request.

It said the house was in good condition - which satisfied the Pendergrasts, who signed the contract.

The report's fine print said that no checks for leaky-building syndrome were carried out unless specifically asked for.

But it was in dispute whether that clause applied only to the van Arkels, who commissioned the report, or also to the Pendergrasts who acted on its advice.

It also incorrectly listed the building materials for the property's external walls.

The High Court will consider the matter further in February.

After 46 years in the supermarket business, Ted van Arkel recently retired as managing director of Progressive - owner of Foodtown, Woolworths and Countdown.