New bill for leaky home legal action

A group of home-owners who failed in court action against the Government over the leaky building fiasco now face paying as much as $80,000 in costs.

Lawyer Paul Grimshaw, who represents the group of Auckland apartment complex owners, confirmed the Government was seeking costs.

This month the Court of Appeal struck out a multimillion-dollar claim by the group of 153 owners of apartments and the body corporate in the Sacramento complex at Botany Downs, Manukau.

The group had tried to sue the Attorney-General on behalf of the former Building Industry Association (BIA).

The court action was expensive and Mr Grimshaw said having to pay costs could affect the group's ability to take the case to the Supreme Court. Seeking costs could be a strategic move by the Government.

"Any litigant who succeeds is entitled to costs so that's the legal position. Why on earth should the Government need to seek costs against a bunch of home-owners?"

The group was told the news at a meeting this week after the Government filed a memo on December 7 advising the Court of Appeal that it would be seeking costs.

"It's fair to say they were shocked - shocked but stoical is how I would describe it," Mr Grimshaw said.

Acting Prime Minister Michael Cullen was not immediately available for comment but One News reported him as saying the Crown's insurers required the Government to seek costs, and that to forgo costs would set a precedent.

When the Appeal Court ruled on December 1, it had to decide if there was duty of care by the BIA to the building owners.

The owners claimed the project manager, building certifier, builders, architect and the cladding system suppliers were negligent.

They said the BIA was negligent in supervising the building certifier and in its approval of the insurance the certifier carried, and owed a duty of care over the cladding system.

The court found there was no duty of care in any of the instances claimed by the owners.

- NZPA