Body Corporate 207624 and others v North Shore City Council - SC 58/2011

Summary

Civil Appeal – Negligence – Leaky building – Whether applicant hotel unit owners owed a duty of care by respondent council – Whether applicant penthouse apartment owners owed a duty of care by council – Whether intended use of building as residential or non-residential a controlling factor in determining whether local authority owes duty of care – How duty of care in respect of a mixed-use building should be determined – Whether council can owe duty of care for negligent misstatement based upon code compliance certificates in absence of specific reliance by applicants.[2011] NZCA 164  CA 760/2009

Result

A Leave to appeal is granted.
B The approved ground is whether and to what extent the respondent local authority owed a duty of care to the body corporate and/or all or some of the appellant unit owners in exercising its regulatory functions under the Building Act 1991 in relation to the construction of the Spencer on Byron building which contains a mixture of  non-residential and residential apartments. 5 August 2011 _________________________________ A The appeal is allowed.
B The orders made in the High Court and Court of Appeal are set aside.
C The appellants’ claim against the respondent is permitted to proceed in the High Court.
D The appellants are entitled to costs in the High Court and the Court of Appeal.  If the parties cannot agree quantum, costs are to be fixed in the respective Courts.
E The respondent is to pay the appellants’ costs in this Court in the sum of $40,000 plus disbursements to be fixed, if necessary, by the Registrar.  11 October 2012

Related Documents

Additional Information

Hearing dates : 20, 21 and 26 March 2012

Elias CJ, Tipping, McGrath, William Young, Chambers JJ.