Sewerage blow-out hits court

An expensive battle over liability for a stinking sewage leak in one of New Zealand's poshest suburbs is headed for court - and the public could pay the price.

Metrowater is suing several companies over the Parnell blocked pipe debacle, which has cost ratepayers $3.5 million to fix, and Auckland City Council is likely to be joined as a defendant. Aucklanders could pay for both sides, through their water charges and their rates.

Metrowater is taking High Court legal action against development company Gattaca and the contractors it used on a failed apartment block complex in late 2008.

The problem took 18 months to fix. The apartments were never built.

Gattaca is owned by Mathew Peters, brother of Jamie Peters, who made the National Business Review rich list in 2005 and 2006 with an estimated fortune of $40m.

The brothers - cousins of Winston Peters - have been described in the past as among the youngest and most successful developers in Auckland.

However, both were declared bankrupt last year - Mathew in July and Jamie in October.

Vanessa Matson, who lived near the construction site, said a horrible smell wafted over her property for months, and the drains overflowed with waste.

"One day I walked down Parnell Rise and had to step over toilet paper that had been washed onto the footpath."

Metrowater chief executive Tim Hammond said the legal action was being taken against Gattaca and its contractors, Dominion Constructors, Civil Works, Aurecon, and MSC Consulting.

"These defendants have also signalled they may wish to bring in other parties they feel may have contributed, including the council."

Dominion Constructors managing director Brett Russell, said his company was not at fault. "I don't believe it was our doing. We worked off plans drawn up by the developer," he said. "Metrowater has taken a scatter gun approach in the hope of hitting a target."

Auckland City Council water manager, Grant Ockleston, said the council was not liable.