Leak victims claiming $1.6m for stigma

Barrister Peri Hoskins and leaky building victim Felicity Boucher. Photo / Natalie Slade

Owners of Ponsonby's 63-unit Blake Central are the latest to be blighted by the leaky-building disaster.

The block at 17 Blake St near Jervois Rd has cladding defects, which resulted in mould and fungal growths including the dangerous stachybotrys.

Water has damaged a lift shaft and carpets and rotted timber balustrades, now replaced with steel. All cladding needs to be stripped off and rotten timber replaced. About $250,000 has been spent on temporary measures.

The owners have filed an $11.7 million claim in the High Court at Auckland against the Auckland City Council, Clark Brown Architects and Carson Group.

Peri Hoskins, Blake Central's barrister from newly-formed specialist leaky-building practice Hoskins Thorn, said $1,633,500 of the claim was for stigma. This was an unusual move but an attempt to recognise sale difficulties even after the work is finished, he said.

"Buyers will either not buy a once-leaky home or they expect to pay less for such a home despite the fact that the repair work has been carried out and the home apparently no longer leaks," he said.

"Although the courts have awarded stigma damages in the past in several cases, the issue is yet to be argued in court and determined in the context of the modern leaky-building phenomenon. I think that the time is ripe for the courts to revisit stigma," Mr Hoskins said.

Blake Central apartment owner Felicity Boucher paid $250,000 for her unit five years ago, assured by all parties there were no leaks despite her suspicions.

Her unit does not leak but serious defects throughout the complex and the unfairness of the situation prompted her to join a seven-person owners' committee and start work on litigation.

"I've spent the last five years dealing with this and I'll be 40 next year. They say your 30s are the best years of your life. I'll still be dealing with this when I'm in my 40s because it probably won't get to court for another year. Then it will take eight to 12 months of work to fix the place," she said.

A national proposal floated last year - a 65:25:10 owner/council/Government split of repair costs in return for not suing - leaves Ms Boucher cold.

"The Government needs to step in here. An owner has just put her apartment up for sale and it will be sold at a huge loss."

Biggest Leakers:

New Zealand's most expensive leaky buildings:

* Hobson Gardens, 2 towers, 97 units, Hobson St, Auckland: $32 million claim.

* Nautilus, 12-level Orewa apartment tower:around $19 million to fix.

* Farnham Terrace, 41 units, Parnell:$18-19 million to fix.

* Sacramento, 153 units, Botany Downs, Manukau City: costing $18 million to fix.

* Blake Central, 63-unit Blake St, Ponsonby: $11 million court claim.

* Spencer on Byron, 250 units, Takapuna: $10 million claim estimate.