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Home / Business / Companies / Construction

Mt Maunganui leaky building heads for 10-week trial over $16m repair: 12 parties in big action

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
9 Oct, 2019 04:55 AM3 mins to read

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The Pacific Apartment, where appeal court action named 11 parties. Photo / file

The Pacific Apartment, where appeal court action named 11 parties. Photo / file

Owners of Mt Maunganui's The Pacific Apartments are set for a 10-week hearing next year over a leaky building repair bill estimated at $16 million.

Decisions from the High Court at Auckland and Court of Appeal reveal the scope of the litigation involving allegations of serious issues with the 68-unit block at 8 Maunganui Rd, overlooking the waterfront.

READ MORE:
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• 'It takes their life savings': Elderly residents struggling with leaky buildings
• Auckland Council may pay out another $350m for leaky buildings

This month, the appeal court heard the case of body corporate 417948 v Watts & Hughes Construction, Tauranga City Council, Avery Team Architects, MPM Projects (2003), GMR Holmac, Tile Trends, Armstrong Plumbing (BOP), Holmes Structures (in liquidation), Omaha Investments No 1, Robert James Foster and Bay of Plenty Asphalt.

The owners sought to defer the trial until full repair costs were determined but parties including the council represented by Amy Davison opposed that.

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The Pacific Apartments at Mt Maunganui. Photo / Alan Gibson
The Pacific Apartments at Mt Maunganui. Photo / Alan Gibson

Last October, the High Court allocated a trial date of July 13 next year for 10 weeks but indicated long-term repairs. It noted that it was unlikely repairs would be finished by then.

"Indeed, they may not be finished until July 2021 or later," said Justice Matthew Downs.

The owners have engaged Grimshaw lawyers Bryan Easton and Andrew Hough to represent them but Easton refused to say which property was involved.

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The property, which the Herald understands to be The Pacific Apartments, is not identified or named in any of the court documents, nor is its address given.

It is only referred to as a Mt Maunganui apartment building which suffers from defects.

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"The estimate of the costs of repairs is detailed and specific: $16,075,928.50," the High Court judge said.

The Pacific Apartments where owners face a $16m repair bill. Photo / file
The Pacific Apartments where owners face a $16m repair bill. Photo / file

No details have yet emerged from the two hearings about the exact nature of issues with the building, what the faults are, where water is coming in and what investigations or repairs, if any, have been undertaken so far.

But architect Kerry Avery said this week he did not know about the latest appeal court matter although he knew of the case generally because he was the architect who designed the block.

"I've heard nothing lately. With leaky building's it's shifting ground. It's a rort. So the latest thing is fire stopping, wiring and seismic issues. They find new things that are deficient. The poor old council, having to foot the bill. It's just bloody ridiculous. It's you and me paying of course, due to joint and several liability," Avery said.

Craig Watts of Watts & Hughes is yet to respond to a request for comment.

Davison said she would seek instructions from the council on whether it would identify the building.

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One owner said today repairs were yet to begin and the body corporate would meet at the end of this month to get an update on the issues.

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