Parnell leaky-building owners head for long trial

Chairwoman of the owners' committee Robyn Horsfall, outside the Farnham St Apartments in Parnell. Photo / Brett Phibbs

Owners of a rotting terrace-style Auckland complex are heading for one of the country's longest leaky-building trials.

A 10-week fixture has been set down in the High Court at Auckland and could start in October, aiming to get judgment against those allegedly responsible for huge problems at the 41-unit housing complex Farnham Terraces in Parnell.

If the case is heard, it will mark one of the final stages in a six-year fight to be heard on the complex built in the mid-1990s.

The owners of the complex initiated the proceedings in 2004 and by discovery phase in 2004-05, the parties were filing and inspecting lists of documents which chronicled the unfolding disaster behind development and construction of the courtyard-style complex.

Farnham Terraces has cracked cladding, walls built too low and meeting the ground, no flashings on courtyard walls, tiled exterior terraces built higher than interior floors, water pouring into the garage underneath, decayed wood and breaches in the waterproof membrane beneath paths and decks.

The complex was developed by various Symphony companies whose owners include ex-Richlister, ex-Chase boss Colin Reynolds.

In 2006, the Symphony businesses joined eight subcontractors to the litigation as third parties, a move which attempted to spread liability.

Symphony could attempt to claim money from other parties which it depended on when developing the complex on top of the old textile warehouse.

By 2007, Symphony had filed its strikeout application seeking to dismiss the body corporate's claim against it.

But Associate Judge David Robinson declined this in the High Court, a decision Symphony appealed against. Last May, Justice Mark Cooper backed the original decision and Symphony remained a party to the litigation.

So the unhappy Symphony then sought the High Court's permission to fight the case in the Court of Appeal. Justice Cooper declined that in October.

By December 3, he had decided on Symphony's costs so the Farnham Terraces owners served a demand that Symphony pay that, serving a statutory demand, a move which once again Symphony opposed and once again lost.

Symphony/Packenham Group were granted an extra fortnight by the court to pay the costs which were due on February 24 or the court would move to liquidate the companies based on the body corporate's application. Symphony said that they were only defending their position.

A report by Trevor Jones, then of Alexander & Co, found systemic hidden defects and said the cost to repair would be much higher than originally estimated.

The owners originally got estimates that it would cost $15 million-$18 million to compensate them for losses suffered and to pay for fixing their places. But more recent estimates show that cost has climbed considerably and could now be closer to $20 million.

They are now preparing themselves for the trial, led by Grant Shand, assisted by Geoff Beresford, of leaky building lawyers Grimshaw & Co.

Robyn Horsfall, chairwoman of the owners' committee, said a resolution appeared to be in sight.

Farnham farce:

* Big Parnell multi-unit leaker.

* Six years to get to court.

* Built in the mid-1990s.

Litigation claiming $18 million+.