Owners face appeals on repair deals

Twins Michelle and Lisa Turner, pictured last year at Sunset Terraces, say they have spent their 20s fighting the leaky-townhouse case. Photo / Brett Phibbs

Owners of two big North Shore apartment complexes face Court of Appeal challenges on legal settlements over repair costs.

In five months, the court will hear appeals on High Court decisions about the properties.

They are the 12-unit Byron Ave apartments overlooking the Takapuna wetland area north of Barrys Point Rd and the 21-unit Sunset Terraces in Mairangi Bay.

Both complexes suffered severe leaks and owners fought marathon battles through the courts to win big awards, shunning the state system that could have landed them before the Weathertight Homes Tribunal.

North Shore City Council was expected to foot the bills after the owners won millions.

But now David Goddard, QC, is challenging those decisions in a notice of appeal filed by lawyers Heaney & Co, who act for the council's insurers, RiskPool.

Both appeals are set down for the week beginning September 7, Mr Goddard says. The cases will be heard consecutively because they concern the same issues.

Last May, Justice Paul Heath ruled against Shore developers Robert and Kay Barton over the leaky Sunset Terraces, where a $1.9 million recladding was needed and $800,000 has already been spent on a patchup. The Bartons say they have no money to pay.

Then last July, Justice Geoffrey Venning said the $2 million-plus he awarded to owners of the leaky 12-unit Byron Ave estate in Takapuna would most likely be paid by North Shore City. The project was by architect/developer Stephen Smythe.

North Shore Mayor Andrew Williams said RiskPool had decided to appeal, partly to seek clarification on points of law.

Mr Goddard's notice of appeal in the Byron Ave case shows he plans to argue particularly against any council payouts to landlords who bought places in the complex to rent to tenants.

But the main thrust of his appeal is that developers, architects, engineers and other property professionals were the parties who unit buyers should have been able to rely on and trust rather than North Shore council.

John Gray of the Homeowners and Buyers Association said he was particularly concerned about the proposal in the appeal that landlords be excluded from making leaky-building claims. This could have big implications for other leaky-unit owners who bought for investment purposes, he said.

Mr Goddard will stress that the council was not liable.

Twin sisters Michelle and Lisa Turner told the Herald last year of their nightmare at Sunset Terraces, fighting through their 20s, which they said should have been the best years of their lives.

Pauline Hough of Byron Ave told in 2007 how she had endured financial hardship and a struggle over her leaky townhouse that she said was lonely, frightening, humiliating and sad.