Landmark leaky homes determinations delivered

11 March 2005

Seven concurrent decisions relating to a dispute over a leaky apartment complex have today been issued by the Weathertight Homes Resolution Service (WHRS).

The Government set up the WHRS to provide assessments of leaky homes, and resolution procedures for claimants to resolve their leaky building disputes.

Previous decisions released by WHRS adjudicators have related to single houses. The determinations issued today relate to seven townhouses in a Ponsonby complex. The homeowners elected to pursue their claim in a group and the WHRS held a single multiparty adjudication hearing for all seven claims.

WHRS National Manager Dr Lisa Ferguson said it was a very complex case and the homeowners elected to proceed through the hearing without formal legal representation. Dr Ferguson said the case shows that the WHRS is delivering flexible and cost-effective resolutions.

“One of the homeowners represented the seven claimants during the hearing, rather than using a lawyer. The adjudicator has found five parties liable for the damage, and he has awarded the seven claimants a total of more than $700,000, including general damages,” Dr Ferguson said. The right of WHRS adjudicators to award general damages was upheld by Judge McElrea in a recent decision (Waitakere City Council v Smith).

“Each of these homeowners paid a total of $400 to the WHRS and received an independent assessment of their home and a comprehensive adjudication hearing,” Dr Ferguson said.

Adjudication hearings are public. Most WHRS claimants choose to resolve their claims at confidential mediation meetings. To date there have been 265 WHRS resolutions of disputes relating to leaky homes: 20 through adjudication, 170 at mediation and 75 resolved prior to reaching the formal resolution process.

“Mediation is currently chosen by 78% of claimants in the resolution process. We understand that homeowners prefer mediation because of the confidential nature of the proceedings,” Dr Ferguson said.

Details of how to obtain copies of WHRS determinations and a summary of the most recent determinations are on the WHRS website www.weathertightness.govt.nz.

The WHRS was set up by the Government in November 2002. The service provides free assessments to determine the extent of water damage as well as access to mediation and adjudication services to help resolve disputes over leaky homes.

For more information: Kate Harray, Phone: 04 460 5417, 027 286 7957