Leaky-home claimants finally celebrate victory

Seven years after their homes began to leak, a group of Ponsonby homeowners can finally celebrate after appeals against their $700,000 compensation award were surprisingly withdrawn.

But settlement of the landmark Ponsonby Gardens case is cloaked in secrecy, leaving open the possibility that Auckland City ratepayers have footed more than their share of the costs. Parties will say only that the settlement reached was amicable.

In a decision in March, Weathertight Homes Resolution Service adjudicator Tony Dean found five parties liable for construction defects and faulty waterproofing in the upmarket townhouses, built in 1996.

Developer Tim Manning's Taradale Properties had been placed in liquidation and Mr Manning was found not personally liable as a director.

Mr Dean apportioned blame between project manager Bruce Christian ($138,000), site manager Steve Lay ($243,700), architect Peter Townsend ($50,000), waterproofers AWL ($141,000) and building certifier the Auckland City Council ($128,000).

But most parties lodged appeals and, with AWL placing itself in liquidation on the eve of the hearing, the council was asked to pay nearly $600,000.

Under the law of joint and several liability, those awarded payouts can obtain from one party amounts owed by others who are unwilling or unable to pay.

Mr Dean set the council's potential joint and several liability at $588,000, raising fears that, with well over a thousand leaky home claims to come in Auckland City alone, rates bills could soar.

In a statement yesterday, council finance general manager Andrew McKenzie would only say that the claimants had been "paid the bulk of what they were due according to the adjudicator's awards".

Recovery of the amount owed by AWL was being pursued separately, Mr McKenzie said.

The settlement will encourage leaky home owners that, while the route to compensation can be tortuous, it's not impossible.

Seven Ponsonby Gardens owners each spent between $80,000 and $100,000 on repairs and claimed damages for stress, health problems, inconvenience and, in two cases, loss of rental income.

Theirs was the first multi-unit claim heard by the weathertight service, set up by the Government to provide a cheaper, quicker alternative to court action.

But the hearing began 18 months after John Gray, owner of unit 2, lodged his claim and, with adjournments, took nearly three months.