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Home / New Zealand

Judge orders building company to reveal documents in a dispute over cost to build home

Tracy Neal
By Tracy Neal
Open Justice multimedia journalist, Nelson-Marlborough·NZ Herald·
23 Feb, 2023 05:00 AM3 mins to read

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Suzanne and Mark Chamberlain say the latest legal decision over issues with their home has cost them tens of thousands more in legal fees, for an order which should have been stuck to two years ago. Photo / Tracy Neal

Suzanne and Mark Chamberlain say the latest legal decision over issues with their home has cost them tens of thousands more in legal fees, for an order which should have been stuck to two years ago. Photo / Tracy Neal

A building company embroiled in a long-running dispute with a couple over their home has been ordered to say if certain documents exist which would support the couple’s claim they were misled over the project.

Mark and Suzanne Chamberlain were back in the District Court this month to thrash out a request for disclosure they claim LSK Builders Ltd, the company that operates the Nelson franchise of GJ Gardner Homes, is refusing to hand over, despite an earlier court order.

They alleged the company was refusing to hand over documents that would prove their claims they were misrepresented in how much it cost.

They argued plans for the house they contracted to have built were changed without their agreement, that the company refused to provide any documents or reasons about why the changes were made, and how this affected the cost of construction.

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A building firm has been ordered to hand over documents that might back claims by the homeowners they were allegedly misled over the contract. Photo / File
A building firm has been ordered to hand over documents that might back claims by the homeowners they were allegedly misled over the contract. Photo / File

But the building firm countered the claim by saying the Chamberlains had been handed all the information requested.

In a reserved judgment released this week, Judge Kevin Kelly has now ordered the company to file an affidavit within 20 days, saying whether it has the documents and if so, to make them available to the Chamberlains for inspection.

The Chamberlains told NZME today it was a small step in a much wider process, which had cost them tens of thousands of dollars more in legal costs, for something they say should have been done two years ago.

Mark Chamberlain said LSK’s refusal to provide the information, and an appeal against an earlier court order had frustrated the process unnecessarily.

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LSK co-director Graham Vercoe told NZME he remains confident they have provided all the documents, and that Judge Kelly’s decision allows him to provide a sworn statement confirming the company has assembled 100 per cent of the documents sought.

“We are happy to have this opportunity (and) wind up the endless arguments about documents, and have our claim for unpaid building costs heard in court,” Vercoe said.

The order relates to any documented material which might support the couple’s search for answers over why they’ve been hit with large increases in provisional allowances [sums over and above the fixed price they signed up to], including almost $13,000 more in council fees and charges, $20,000 more for earthworks, a timber retaining wall, and the construction of a concrete floor.

The home’s timber foundations and sub-flooring were almost $16,000 more than estimated and engineering works were an additional $6000.

Judge Kelly also ordered that if the documents did exist, but if the company no longer had them, then it had to say to its best knowledge and belief, what had happened to them.

However, a request for tailored discovery on a neighbouring property was declined, because of confusion over the particular address for which this discovery was sought.

The Chamberlains had wanted to know if homes built by LSK nearby had experienced similar issues which led to delays and higher costs.

Judge Kelly said Mark Chamberlain, under cross-examination, had revealed that what was sought was in fact information related to a different address than what he had confirmed in evidence.

An order was also made for a further case management conference to be convened as soon as possible, to determine readiness for trial.

Vercoe added the company had sought its day in court for a long time.

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He alleged it had instead been dealing with a “social media campaign” that sought to damage the company’s reputation.

“We want this case heard in court so the people we build homes for hear the facts, not social media claims,” Vercoe said.




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