KEY POINTS:
Leaky home victims are fearing the outcome of a decision to be made this week on court action against Hobsonville homeowner Colleen Dicks.
RiskPool, which insures 82 councils nationally, will meet in Wellington on Wednesday to decide whether to appeal against the High Court decision that awarded Mrs Dicks $250,900 to fix her rotting house.
RiskPool lodged its notice of appeal at the start of the month, but its full board is yet to discuss whether it will proceed with the Court of Appeal action.
Mrs Dicks sued Waitakere City Council and builder Robert McDonald and his company but after her victory, Waitakere - at the behest of its insurer - lodged a notice of appeal.
Mrs Dicks now faces further legal costs of over $10,000, has nowhere to live and has lost her life savings.
John Gray, head of the Leaky Homes Action Group, said victims were fearful and nervous about the decision on Wednesday because there was so much at stake.
The Dicks ruling was hailed as a victory for homeowners over councils which inspected and signed off poorly built homes which are now rotting.
"What will happen if Waitakere succeeds?" Mr Gray asked. "If they do, there will be thousands of homes that will not be repaired. This could have an enormous impact on the lives of the owners."
But he is also concerned that if the appeal succeeds, councils will have beaten other leaky home victims in their fight for justice.
"Effectively, if they succeed, Waitakere will have won on behalf of all councils, via RiskPool, in saying that it is all right for councils to abdicate their regulatory and social responsibility to ensure that homeowners are not exposed to unsafe or insanitary homes."
He said the appeal had an insidious aspect which would affect all home owners and the owners of commercial buildings.
Denis Sheard, Waitakere's general counsel and a member of RiskPool's board, emphasised it was RiskPool's decision - not the council's - to take the appeal.
Waitakere Mayor Bob Harvey said the council should write a cheque and say sorry and he was uncomfortable with the appeal.
Mr Sheard said the council had done its duty by Mrs Dicks and thought all issues were resolved two years ago after staff attended Weathertight Homes Resolution Service mediation on the issue.
"Mrs Dicks' mediation was settled in May 2005," he said. That was when the service ruled the builder must fix her house. However, only partial repairs were done by Mr McDonald, forcing Mrs Dicks into court.
Mr Sheard said it was unfair to totally blame councils.
"I've heard criticism that Waitakere should have done more to get matters resolved. But it was not council's fault matters were not resolved - it was the builder who welshed."
What is riskpool?
* RiskPool was started 10 years ago to cover councils.
* It is part of Civic Assurance, covering $8 billion of council assets.
* RiskPool provides legal and professional liability protection.
* 82 councils pay into the mutual fund.
* Its board meets on Wednesday over the Dicks case.
