More than 20,000 homeowners may be able to seek reparations from Carter Holt Harvey after it admitted selling below-grade timber.
From 2000-2003 Carter Holt Harvey sold about $250 million worth of timber rated MGP10, a high-strength wood. But it was actually lower-grade.
The wood was used in an estimated 20,000
houses, some of which are already showing the effects, with bowing and bending frames. Last week the company was fined $900,000 for knowingly selling the low-grade timber.
But it could cost a lot more - the ruling means homeowners whose houses have the wrong wood could have a claim against the company.
MGP10 is normally used in framing for floors, roofs and window lintels.
"There's bound to be a significant liability sheeted home to Carter Holt over this," said lawyer Paul Grimshaw, who represents thousands of leaky-home owners.
He said homeowners would have to show the wood was used in their home and that they had suffered harm. "The only thing the plaintiff needs to do is prove they have the defective timber and that it's causing problems. There will be lots of people climbing up in their attics, checking what sort of timber they've got."
If homeowners have to repair their house they could claim for stress and anxiety, as well as repair costs and accommodation if they had to move out, he said.
Grimshaw said it was impossible to put a figure on how much Carter Holt might have to pay out.
Master Builders' Association chief executive Pieter Burghout said homeowners had little cause for concern, as there would be no structural or safety problems. "If you look at an average wall frame with 10 bits of timber, three of them will be deficient and those will only be out by 10per cent. But the overall wall will still be as strong as required by the building code."
He said homeowners would see only bouncy floors or jamming in sliding doors. If they had not seen that by now, there would be no problems.
"If the timber's going to sag, it sags when the weight goes on it." Homeowners who found problems should speak to their builder, he said.
