KEY POINTS:
Leaky building experts yesterday praised the Government for moving fast to close a legal loophole which might have deprived rotting home victims of getting money for their mental distress and anxiety.
John Gray of the Leaky Homes Action Group said he had told Government officials only a few weeks ago about a loophole, following a High Court ruling which rejected awarding money to victims.
Mr Gray said he was delighted with the swift action this week. "This is an incredibly good result and an incredibly fast response."
John Green, a Weathertight Homes Resolution Service adjudicator, also welcomed the move. Adjudicators had been awarding money for general damages for some time, he said, and wanted to continue to do so.
The loophole arose after a High Court judgment issued by Justice Lyn Stevens on March 29 over a house at Oakwood Grove in Auckland's eastern beaches.
The judge decided that under the Weathertight Homes Resolution Act 2002, general damages could not be awarded as compensation for any mental anxiety or stress suffered by the homeowners.
Clayton Cosgrove, Minister of Building and Construction, said yesterday he was concerned because this could set a precedent for other cases and for Weathertight adjudicators administering the law.
So on Monday, he introduced a bill to amend the law for claimants to get money for mental anxiety or stress. The bill would be referred to the social services select committee for public submissions before it went back to the House.
