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The owners of leaky homes would be eligible for general damages, including compensation for mental distress and anxiety, under legislation debated by Parliament yesterday.
A High Court decision in March found that the Weathertight Homes Resolution Service had no basis to award general damages stemming from the distress of owning a water-damaged home.
Building Minister Clayton Cosgrove said people had believed the law allowed damages to be awarded to homeowners, that was what Parliament had always intended, and the law needed to be changed to give leaky-home owners certainty that damages could be awarded.
However, for David and Fleur Hartley, who bought their Eastern Beach home in 2003, a law change would come too late - it would not affect their claim, although claims affected by a law change and brought before it would come into force would be covered.
The Hartleys' house was built in 1999, and soon after the couple moved in it began to leak extensively. Walls and carpets were damp, and the Hartleys discovered evidence of previous repairs on leaks.
The Hartleys said they were out of pocket by $200,000 repairing the damage to their home. The court eventually awarded them $181,000, but found no general damages could be awarded.
The legislation - which was remains in the committee stages - says owners of leaky homes are eligible for general as well as compensatory damages.
Mr Cosgrove pointed out that general damages were not compulsory, and had only been granted in around one-fifth of claims.
Most awards have also been modest, averaging $9450. Mr Cosgrove has said the damages were an acknowledgment of the stress suffered.
Leaky homes claims
A new law would allow owners of leaky homes to claim damages for:
* Deficiencies that allowed water to penetrate their home.
* Water getting into their home.
* Damage or loss of value caused by leaks.
* Loss of value caused by deficiencies in the house.
* Deficiencies which are likely to cause leaks in the future.
* General damages, without limitation, for relevant mental distress.
