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Home / New Zealand

Leaky homes battler claims legal bills swallowed most of compo cash

Stuart Dye
Stuart Dye
Head of Print Content·
9 May, 2007 05:00 PM3 mins to read

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Colleen Dicks

Colleen Dicks

KEY POINTS:

A woman's battle to win compensation in a landmark leaky homes case has moved onto another front - a dispute over the size of the legal bill.

Colleen Dicks said last night she wished she had "not attempted to get justice". Her $250,000 payout had gone on legal
bills and consultants' fees, she said, leaving her no money to rebuild her house.

But lawyer Paul Grimshaw, whose firm represents Mrs Dicks, said her bill had been heavily discounted and he rejected her allegations. Legal fees, court costs, experts' costs and general disbursements amounted to $198,117, he said.

Mrs Dicks said: "I wonder if I'm a bit naive. I would have been better off if I'd just used what money I had to get the house repaired."

It is almost three years since the 70-year-old widow began her fight for compensation after her Hobsonville home became uninhabitable.

She became a poster girl for the 40,000 leaky homes victims who followed the ups and downs of her long-running battle for justice.

In January, the High Court ordered the Waitakere City Council to pay her $250,900. The council was left with the full bill because the builder, Hobson Swan Construction, was in liquidation.

Even then, Mrs Dicks faced another anxious wait after the council said it would appeal.

It wasn't until the end of February that the council eventually backed down.

But Mrs Dicks, a grandmother of 17, told the Herald the money left after paying all her bills meant there was "certainly no way of demolishing or rebuilding".

She would find out exact figures in the next two weeks and would then decide what to do with her rotting, leaking Wisely Rd house.

National Party building spokesman Bob Clarkson said the Government needed to speed up the process of fixing leaky homes.

Building and Construction Minister Clayton Cosgrove said that was happening through the Weathertight Resolution Service, but Mrs Dicks had chosen to pursue a legal avenue outside that.

Mr Grimshaw said he was disappointed that it appeared she was dissatisfied with the judgment.

"We were delighted on Mrs Dicks' behalf when the High Court found against the Waitakere City Council and the builder.

"The approach taken by the defendants in this case meant that Mrs Dicks had no choice but to go to trial which is a lengthy and costly process.

"The costs charged to cover the full process from commencement of proceedings, attempts to settle the case and eventually, a six-day high court trial were entirely justified.

"Given that our justice system applies a scale to the recovery of legal costs, Mrs Dicks came as close to full recovery of costs as the New Zealand legal system allows. She achieved a complete victory and an excellent result," Mr Grimshaw said.

He said Mrs Dicks was awarded a total of $367,356 by the High Court.

After legal fees, court costs, experts' costs and general disbursements Mrs Dicks made a net recovery of about $169,000.

The High Court found that the cost to demolish and rebuild Mrs Dicks house would be $200,000.

Mrs Dicks therefore only needed to contribute $31,000 to receive a completely new home, he said.

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