Leaky house claim victory

Seven home owners have received a six-figure payout in a landmark decision in the leaky homes scandal.

A Government-formed resolution team awarded around $700,000 to the seven people whose townhouses are in a Ponsonby complex in Auckland.

It is the first time a joint action has been allowed in a leaky homes claim, with all previous decisions relating to single houses.

John Gray, who represented himself and his neighbours throughout the claim, said last night it was a moral victory.

"We are just hopeful now that the respondents do the honourable thing and don't appeal the decision, which appears to be the modus operandi."

The leaks forced Mr Gray and his neighbours to tear up floors, rip down exterior and interior walls and rebuild their townhouses.

Since the Vermont Street houses went up almost 10 years ago they have been rotting throughout.

The owners, who have been battling for justice for five years, also asked for compensation for stress and "stigma" for problems in selling the homes on.

They sought $1.2 million from Auckland City Council, which carried out inspections and signed off building work; developer Tim Manning who, through his Taradale Properties company, built the townhouses; architect Peter Townsend, of the former Jessop Townsend Architects, who designed them; Architectural Waterproofing, which applied waterproofing membranes to the decks; and Bruce Christian and Stephen Lay, formerly of Taradale, who worked on the project.

Of those, only Mr Manning was not ordered to pay damages.

The claim for stigma was not accepted because of improvements to the houses, which meant they were no longer likely to suffer a loss of value.

Mr Gray said the residents felt they had "done pretty well".

The Weathertight Homes Resolution Service was set up in 2002 to help resolve leaky homes disputes. There have been about 2700 claims to the service of which about 10 per cent have been resolved.

Mr Gray urged leaky home owners to pursue claims.

"Hopefully they may be buoyed by this decision.

"I would encourage everyone to make a claim because the true picture has still to be seen."

The case

* Seven owners of leaky homes awarded $700,000
* Auckland City Council, architect Peter Townsend, Architectural Waterproofing, and Bruce Christian and Stephen Lay, formerly of Taradale Developments, ordered to pay up
* First joint action resolved by Government-formed resolution service