Harbour Oaks Leaky building defects claim: Auckland apartment tower block owners sue for $140 million

Harbour Oaks' owners allege a range of problems with their tower. Photo / Natalie Slade

The owners of one of New Zealand's tallest apartment blocks are suing for building defects in a $140 million case which is the largest of its type in this country.

Unit title owners in the 40-level 406-unit Harbour Oaks, at 16 Gore St near the Britomart, are suing parties they blame for defects, according to court documents.

Some units are run by hotel operation Auckland Harbour Suites, which says it has "150 rooms boasting sweeping views of the Waitematā Harbour and Auckland City".

Last month, a decision was issued by the High Court at Auckland in the matter.

Last June, Justice Tracey Walker described the case as being of "immense proportions".

In preliminary hearings, one of the defendants, Auckland Council, has already argued against orders in the case, saying those were wrong.

But the full, substantive hearing in the case is yet to proceed.

The Gore Street apartments matter, also known as Harbour Oaks, has been brought to court by Body Corporate 366567, Amer Ltd and others.

They are suing Auckland Council, Clark Brown Architects, Equus Industries, Mapei New Zealand, Aquastop, Charles Norager & Son, Firepel Kidd, Holmes Fire & Safety, MacDonald Barnett Partners, Holmes Structures, Chenery Contracting and Brookfield Multiplex Constructions (NZ), which is in liquidation. Action against De Boer Waterproofing Solutions and Holmes Structures was discontinued.

Last month's decision said the case was a $140m claim alleging defective approval and construction of a large apartment block on Gore St, Auckland. Naturally, the primary defendant is the local authority.

"Trial is expected to take 20 weeks."

The case is due to be heard from early May after three previous fixtures for hearings were abandoned, the latest decision says.

"The owners say the building was constructed with fire, structural, weathertightness and internal moisture defects," a decision out late last year said.

Thirteen groups of defects were identified.

"The plaintiffs contend, among other things, that the defective construction arose from negligence on the part of the defendants. Building consent for proposed remedial works has been issued by Auckland Council," the court decision said.

It mentioned a figure $20m higher than was cited in the latest decision this year.

"The plaintiffs currently claim damages of approximately $160 million for the cost of the remedial works, together with general damages, interest and costs — a total in excess of $170 million.

"More recently, the suggestion is that the claims may approach $200 million due to cost escalation. Evidence has been served in tranches. Since the close of pleadings date the plaintiffs have served further evidence on multiple occasions culminating in 'consolidated' or 'replacement' briefs in March 2021 which also comprised supplementary evidence. There have also been multiple discovery affidavits filed by the plaintiffs between December 2018 and December 2021, the latter disclosing historical documents not previously discovered," the court decision of December 21 last year said.

Harbour Oaks' owners are suing those involved in design, construction and consents. Photo / Natalie Slade

A number of interim decisions have been reached in the case.

In one decision, a judge said the claim was one of the larger building defects cases involving a single building.

The cost of remedial work had been estimated at $131m.

At the start of the proceeding in 2014, the unit owners' claim was for a more modest $11m, one judge noted.

Since then, their experts had been investigating defects, testing, modelling, developing remedial solutions and revising costs.

The owners' case was that with greater knowledge of the defects, the scope and cost of repairs had gone up so substantially.

Gareth Lewis, of Grimshaw & Co, is representing the owners. He said he couldn't comment at this stage of proceedings. Attempts were made to reach the chairman of the owners' committee of the body corporate.

The Herald has reported on other large leaky building claims, but none as large as Harbour Oaks.

In 2016, the Herald reported that Victopia apartments at 135 Victoria St West was the largest claim on a defective building.

An initial $3m claim had grown to more than $40m.

But that claim settled out of court in a confidential arrangement. Repairs have been underway for some years. In 2019, a 40kg cladding panel shed from near the top and fell to the ground, resulting in street closures and traffic diversions.

The 280-unit St Lukes Garden complex opposite Westfield St Lukes is also a large leaky building repair and has previously been cited as the biggest in New Zealand.