Leaky building leads to court case

The owners of West Quay Apartments are pursuing a multi-million-dollar leaky building claim against the project's developers

Apartment owners in one of Hawke's Bay's largest multi-story residential developments are pursuing a multi-million-dollar leaky building claim against the project's developers, its contractors and Napier City Council.

The 97 owners of unit titles within the four-block apartment complex at 14 West Quay, Ahuriri, are seeking repair costs and damages from nine parties involved in the project, according to a statement of claim filed at the High Court.

The action is being taken by the complex's body corporate which alleges defective construction of the five-story, 103 apartment project which was built between 2006 and 2007 at a cost of about $22 million.

The High Court claim alleges Napier City Council was negligent in its handling of the building consent process and with inspections related to the project.

Along with the council, other defendants listed in the statement of claim include the development company behind the project, Romanus Ltd (now in liquidation), head contractor Alexander Lachlan Ltd, and several sub-contractors and professional service providers involved in the project.

The claim lists 36 alleged "defects" with the building which it says have caused leaking, corrosion and other damage totalling more than $4.5 million.

The claim also alleges apartment owners have suffered "stress and inconvenience" amounting to $1.695 million.

Romanus Ltd, whose director was Wellington property developer Andrew Fawcet, was placed in liquidation in July last year with an initial liquidator's report estimating the company had debts of just under $2 million, including $925,000 owed to Inland Revenue.

Alexander Lachlan Ltd's two directors are Mr Fawcet and Napier City Councillor Mark Hamilton.

Mr Hamilton is managing director of Alexander Construction, the company which built the apartments and is also named as a defendant in the statement of claim. Neither Mr Hamilton nor Mr Fawcett are personally named as defendants in the claim.

Napier City Council chief executive Wayne Jack said he was unable to comment on the implications of the body corporate's claim for ratepayers because the council was working through a legal process.

"We're working through a process. We hope to get it resolved shortly."

The chair of the body corporate, Mike Francis, declined to comment, citing the ongoing nature of the claim.

Mr Hamilton also declined to comment.

According to the statement of claim, the 97 apartment owners taking part in the action are each seeking either $15,000 or $25,000.

Those damage claims arise from "the discovery of the defects, concern about the diminished value of the units, general anxiety arising from the uncertainty of owning a unit affected by the defects and difficulties over the prospect of selling their unit while it suffers from the defects, and having to live in their unit while remedial works take place or disruption to tenancies experienced by owners who do not live in their units".