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The owners of more than 250 apartments in the luxury Spencer On Byron building are suing North Shore City Council and several other parties over alleged design "defects" in what could be the biggest leaky building case yet seen in New Zealand.
Rumours have been rife about leaks at the 23-storey hotel and apartment tower in Takapuna and the council has confirmed that the matter is going to court.
"We can confirm that proceedings have been issued against a number of parties, including council, alleging that the building contains defects," said a statement.
It refused to comment further, saying inquiries should be addressed to the claimants' solicitor, Grimshaw & Co, the Auckland law firm which specialises in leaky building cases.
Lawyer Paul Grimshaw told the Herald On Sunday his company was acting for the owners of 255 apartments in the complex.
He said High Court proceedings had been issued against several parties, including the developer, the builder and the council.
Grimshaw said he hoped the defendants would be "sensible" and compensate the owners for their repair and associated costs.
"But, if not, we will see what the court has to say."
Grimshaw would not go into details about the problems owners had encountered.
Neither Charco director James Speedy, hotel general manager Greg Remmington nor Multiplex returned Herald on Sunday's calls.
A leaky building expert told the Herald On Sunday there had been rumours about problems at the 4-star complex, which opened in 2001.
They included leaky roof and window joinery and leaks from balconies through door and window joinery as a result of being in a high wind zone.
"It needed to be a specific design but apparently it is considered to be in a 'low wind' zone. But anyone with an ounce of common sense and knowledge of meteorology would know that that building, of all buildings, has to have one of the highest wind-zone risks of any building in all of Auckland and is exposed to the four winds and driving rain."
The $70 million project was a joint venture between Covington Group - which has changed its name to Charco - and Oenone Spencer and was built by Multiplex on land long owned by the Spencer family.
With 249 rooms and six penthouse apartments over 23 floors, the tower was the tallest and most glamorous building on the Shore when it was built eight years ago.
Guests have included Prime Minister Helen Clark, Apple co-founder Steve Wozniak, and the Breakers basketball team. The hotel boasts stunning sea views, a heated outdoor pool, all-weather floodlit tennis court, gym, jacuzzi, restaurant, bars and conference rooms.
It's not the first time the hotel has been embroiled in controversy.
Disgruntled investors who bought suites have previously taken the developers to court alleging misrepresentation.
And in 2002 investors threatened lawsuits against hotel management company Castle Group after returns were cut from 8 per cent to 4 per cent. New Zealand's largest leaky building case so far, also handled by Grimshaw & Co, was the $11m settlement won last year by owners of the 153-unit Sacramento development in Botany Downs.
The owners sued a long list of companies involved in its construction.
