A spike in homicides in Auckland City is nothing to be worried about says Deputy Mayor Desley Simpson, as a new meth capital of the country is crowned and wild weather approcahes.
A respected businessman and Queen’s Service Medal recipient who was ordered to pay nearly $1 million in damages in a high-profile leaky building case has relinquished his JP warrants and his company is in liquidation.
And despite his company’s financial issues, Davinder Rahal has instructed lawyersto appeal a High Court decision which found he and First Trust Limited (FTL) had engaged in deceptive conduct to sell a rot-infested house to a young couple in what the judge described as “quite literally a cover-up”.
Rahal – who was awarded a gong for his services to the Indian community in 2012, and until last month was also a practising JP – was ordered to pay nearly $1m in damages and repairs in a decision handed down by Justice Anne Hinton in May.
The judge found Rahal was aware the Goodwood Heights, Manukau, property suffered significant weather-tightness issues when he sold it to first-home buyers Ameet Bhargav and his wife Renu in March 2020.
Davinder Rahal and his company were found liable for nearly $1m in damages after the deceptive sale of this leaky home in Goodwood Heights, Manukau, in 2020. Photo / Alex Burton
The finding said Rahal authorised cosmetic repairs to mask water damage and deliberately failed to disclose defects to the buyers.
An agent who sold the property to Rahal in 2019 told the court there were “obvious signs of leak and damage” and the agent made it clear to prospective buyers that “the property had weather-tightness issues”.
Giving evidence, Rahal accepted parts of the property “smelt damp and mouldy” when he viewed it, but saidhe thought this was just part of the issues that made it a “do up”.
He denied being told by the agent that the house had weather-tightness issues.
“If I ever heard the word ‘leaky’, I will run away from that house ... I would never have proceeded further.”
The judge disagreed, finding it was “inherently implausible” that the businessman was not aware of weather-tightness issues when he bought the home.
“I am satisfied that Mr Rahal was well aware of, and in fact authorised, the ‘cover up’ works conducted post-purchase,” she wrote.
“His failure to disclose that information constituted misleading and deceptive conduct.”
Davinder Rahal was found to have deceptively sold a leaky home to a young couple in Goodwood Heights, Manukau in March 2020. Photo / Supplied
The Herald can reveal that Rahal has now appealed the decision, arguing he should not be held personally liable and claiming he was only acting on behalf of the company.
The case is scheduled to be heard in the Court of Appeal next year.
The appeal will be another blow for the plaintiffs, who have now waited more than four years for justice and are stuck living in a rotting home with a young child, having spent at least $400,000 on legal fees.
It can also be revealed that Rahal has resigned as a JP ahead of a Ministry of Justice probe into whether he was fit to continue holding JP warrants. The investigation had been on hold pending the outcome of his appeal.
Ministry of Justice chief legal counsel Jeff Orr confirmed Rahal had relinquished his warrant by retiring from the role.
“This means the Ministry has no further need for involvement in the matter, and its investigation into Mr Rahal’s conduct has ceased.”
The Honours Unit is also assessing whether it is suitable for Rahal to hold a Queen’s Service Medal in light of the court findings. That process is also on hold pending the appeal’s determination.
The couple paid $665,000 for this Goodwood Heights home in March 2020. It turned out to be infested with rot. Photo / NZME
Meanwhile, a Takapuna law firm has successfully applied to have Rahal’s company liquidated over an unpaid legal fees debt, the Herald can reveal.
FTL was placed into liquidation on August 22 by order of the High Court following an application by creditors Simpson and Western.
Baker Tilly Staples Rodway liquidator Jared Booth told the Herald he was in the initial investigative stages and due to issue a first liquidator’s report on September 26. This would provide information on the number of creditors and the company’s financial position.
“The liquidators have been in correspondence with a number of parties in relation to the company, including its director.
“The liquidators have been made aware of the mentioned court judgment and have been in correspondence with the affected creditor.
“The liquidators are taking steps to realise the assets of the company for the benefit of its creditors.”
The Herald understands charging orders have been placed on the titles of several properties owned by Rahal and his company by lawyers representing Bhargav and his wife.
It’s hoped a commercial property owned by FTL will be sold as part of the liquidation process and the proceeds used to settle the damages order.
Similar orders were placed on Rahal’s own home in Goodwood Heights, which is just a few doors down from the leaky house he sold to the couple, but have now been discharged.
Meanwhile, another of Rahal’s companies is also in liquidation and facing claims by multiple creditors.
Bath and Tile Limited was placed in liquidation in March by order of the High Court following cashflow problems linked to the Covid 19 pandemic.
