KEY POINTS:
A large construction firm's legal attempt to stall repairs to a multimillion-dollar leaky apartment complex has been dealt a hammer blow by the Court of Appeal.
The court has dismissed the building firm's application to challenge an arbitrator's ruling that the construction firm must repair the 65-townhouse complex in Auckland at a cost of more than $4.2 million.
In the latest round of a long-running case, Downer Construction has been denied the right to argue in the Court of Appeal about whether it should fix the St Lukes townhouse project, which it started in 2000.
The Court of Appeal has sided with the High Court, reinforcing an order made two years ago that the builder must fix the townhouses.
Downer Construction (New Zealand) designed and built the Silverfield Terraces complex at 3 Wagener Place in St Lukes. Silverfield Developments sold all the units but most are suffering from water damage.
Downer had given a warranty that the buildings would be watertight.
Silverfield wanted Downer to spend more than $4.2 million fixing the units, but Downer refused and began a series of legal challenges. The matter dates back to Downer objecting to a ruling by disputes arbitrator Tomas Kennedy-Grant, QC, who found that the builder had to fix the townhouses.
Downer challenged the arbitrator's ability to issue that order.
Last year, Downer went to the High Court at Auckland, applying for leave to go to the Court of Appeal to challenge a ruling - for which it needed special permission because it was five weeks out of time - and the right to appeal against a High Court judgment.
Now, the Court of Appeal has ruled against Downer. It said the builder had been given leave to take one question of law to the High Court but was now seeking to bring "a myriad of questions". But issues should narrow, not widen, as a dispute climbed the appellate ladder, it said.
Christine Meechan, representing Silverfield, said she was pleased with the decision.
Downer Construction director Geoffrey Bruce, who lives in Sydney, said he had not seen the Court of Appeal's decision and refused to comment last night.
However, residents told the Herald of their delight at the ruling.
Christine Williams, who has lived in a Silverfield unit since the complex was built, was celebrating last night.
"That's wonderful news. Where's the champagne?"
Mrs Williams said some of her neighbours had managed to sell their properties while the case had been going on. "They probably didn't get the price they were asking for, though."
Oleg Popov, who has lived in one of the units with his wife for two years, said he had not been aware of the leak problem when he bought the property.
"I'm glad the decision has been made," he said. "It just took a bit long, that's all."
Leaky homes
* The 65-unit Silverfield Terraces built by Downer at St Lukes were finished in July 2001.
* A 2002 report found widespread leaks.
* Developer Silverfield wanted Downer to spend more than $4.2 million on repairs, but Downer refused, and opposed doing the work by a series of legal moves.
