Auckland City called 'heartless'

Ponsonby Gardens resident John Gray. Picture / Martin Sykes

The seven owners in the Ponsonby Gardens townhouse complex awarded $700,000 in a landmark leaky building ruling are dismayed fresh legal moves by the Auckland City Council will add to the years spent dealing with their defective homes.

"The council is heartless in prolonging the agony by pursuing an appeal at this late stage," John Gray, a spokesman for the owners, said last night.

The council has joined an appeal by the site manager, project manager and architect against the ruling by adjudicator Tony Dean in March.

In the Ponsonby Gardens case, Auckland City's share was $128,000 and it has paid this. But its ratepayers face a bill of $588,000 because of the "joint or several liability" law. Under the law, when several parties are found to share liability but some do not pay, claimants can pursue full payment from one party - known as the "last one standing".

Ponsonby Gardens was the first claim by multiple owners heard by the Weathertight Homes Resolution Service. In a decision in March, Mr Dean apportioned liability between site manager Steve Lay ($243,700), project manager Bruce Christian ($138,000), architect Peter Townsend ($50,500), waterproofers AWL (in liquidation) and the council.

With the Government refusing to concede any liability for the leaky homes scandal, councils whose building inspectors signed off faulty houses are the most likely to pay. Councils must then try to recover the other parties' debts - a costly task.

Council acting finance director Robert Nelson said the council had joined the appeal purely for defensive purposes to protect ratepayers under the joint and several liability law, and so "we don't suddenly get our liability increased further".

Mr Gray said under joint and several liability the council still had to pay $460,000 of its $588,000 bill.

"The claimants think that it is unfortunate that the burden of payment in most cases ... will rest with the ratepayers, but that is the law of the land," Mr Gray said.

He said the council, which had spent $350,000 in legal costs to date, said it did not intend to appeal.

Starting the rot

* Leaks began to appear in the Ponsonby Gardens townhouse complex within two years of construction in 1996.

* The owners had the townhouses stripped, reclad and extensively repaired at their own expense, each paying between $80,000 and $100,000 in repairs and fees.