KEY POINTS:
Victims of New Zealand's largest rotting housing disaster have just netted an $11 million settlement - the biggest involving leaky homes.
Owners of the 153-unit Sacramento development in Botany Downs were poised to begin a nine-month $2 million battle in the High Court at Auckland to claim $15 million.
But the offer of the massive payout turned the victims into victors, and the landmark resolution will now enable them to begin a daunting repair job.
Sacramento, developed by Tim Manning, formerly of Taradale Properties and now of Norwich Properties, is the biggest and most complicated leaky building case to date.
Wayne Evans, head of the body corporate owners' committee, said an extraordinary general meeting at Sacramento on Tuesday night passed a resolution to devote the entire amount to repairs. "The room was packed and there was a jubilant mood, a lot of smiles," he said, adding that most of the owners had contributed to the $1 million needed for legal and professional fees.
Geoff Fletcher, also on the body corporate committee, said owners were relieved, but the battle had been long and hard and no territorial authorities had contributed.
Mr Evans said the settlement agreement was struck on December 19, but a clause stipulated payment only after 30 working days, which meant the money went into the body corporate's trust account only recently.
He praised lawyer Paul Grimshaw, of Grimshaw & Co, who represented the owners, and building surveyors Alexander & Co, which acted as consultants. Steve Alexander said the owners were purposeful.
"They have been very determined over a long period when many others would have become impatient and sought a quick fix," he said.
Mr Evans said cladding manufacturer James Hardie New Zealand, Wattyl NZ and various insurers who supplied professional indemnity to a long list of defendants, were also to be lauded. "Some of their senior management and their legal representatives dealt with us in a professional and fair way," Mr Evans said.
"Now, we're seeking approval from the owners to move forward to form a committee set up to administer the redevelopment of the complex and let the tender in the next three to six months."
Mr Grimshaw said Mr Evans had a gritty determination and all the owners had fought a long and courageous battle.
"This is a significant settlement, providing certainty for the owners and enabling them to repair their homes and get on with their lives," Mr Grimshaw said yesterday.
The impending High Court trial would have cost at least $2 million, he estimated, although he refused to confirm the settlement's exact amount.
The owners had been taking their case against the project manager, the building certifier, the builders, the architect, the cladding system suppliers and many others - claiming negligence.
The owners had battled to get money throughout most of this decade and tried to sue the Government's Building Industry Authority. But the Court of Appeal rejected this in 2005.
The Building Research Association also succeeded in being struck out of the Sacramento litigation.
Body Corporate 200200 named 31 defendants in documents filed at the High Court, including some companies in liquidation.
Defendants included Approved Building Certifiers, Akita Construction, Ellerslie Park Holdings, Link Construction, Stan Powley Architects, James Hardie New Zealand, Dalton Management, Taradale Property Developments, Sigatoka Investments (No 11, 12 and 16), Progressive Building Systems, CSR Building Material trading as Monier, Vero Insurance, Ace Insurance, QBE Insurance, Wattyl NZ, R & R Painters, Trade Mart trading as Placemakers, CSR Building Materials (NZ), Harper Roofing, Trendz Ceramic Tiling Co, Fletcher Distribution, Aztech Coatings, Promat International, Fletcher Challenge Forest Industries, Royal & Sun Alliance Insurance and The Underwriters Insurance.
HOW IT UNFOLDED
* Sacramento is the largest rotting housing project in New Zealand
* Fibre-cement cladding over untreated timber allowed major leaks
* Demolition of some units was pondered, but all are still standing
* Locked ranchsliders and propped decks aimed to stop further disasters
* Owners who sold were forced to discount asking prices by $100,000
* Now, the most complicated and biggest leaky repair job is about to start
