High Court, Lang J, 17 August 2010
Farnham Terraces, 8 Farnham Street, Parnell
Symphony Group Limited converted an office and warehouse into 41 Units. These units suffered from leaks. The unit owners and body corporate brought proceedings against several defendants, including the Auckland City Council. The Council joined General Manukau which it alleged installed the waterproof membrane to the property, and sought contribution from it.
Previously, defendants were able to claim contribution from third parties for building work even though the building work occurred more than 10 years before that claim was issued.
However, in this decision Lang J held that claims by defendants for contribution must be brought within 10 years of the alleged negligent building work. Some of the reasoning behind this is:
a) Parliament’s intention in the Limitation Act is clear: it prohibits civil proceedings relating to building work being commenced after 10 years or more from when the property was built;
b) There are important policy reasons behind limiting claims to work occurring within 10 years; and
c) Dustin (where the Court also found the 10 year limitation applied to a defendant’s action for contribution) has been upheld in many other cases.
Comments
This decision will limit the scope for defendants to seek contribution against each other where building work has occurred more than 10 years before the claim.
Download to read full decision.
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Body Corporate 169791 & Ors v Auckland City Council & Ors
High Court, Lang J, 17 August 2010
Farnham Terraces, 8 Farnham Street, Parnell
Symphony Group Limited converted an office and warehouse into 41 Units. These units suffered from leaks. The unit owners and body corporate brought proceedings against several defendants, including the Auckland City Council. The Council joined General Manukau which it alleged installed the waterproof membrane to the property, and sought contribution from it.
Previously, defendants were able to claim contribution from third parties for building work even though the building work occurred more than 10 years before that claim was issued.
However, in this decision Lang J held that claims by defendants for contribution must be brought within 10 years of the alleged negligent building work. Some of the reasoning behind this is:
a) Parliament’s intention in the Limitation Act is clear: it prohibits civil proceedings relating to building work being commenced after 10 years or more from when the property was built;
b) There are important policy reasons behind limiting claims to work occurring within 10 years; and
c) Dustin (where the Court also found the 10 year limitation applied to a defendant’s action for contribution) has been upheld in many other cases.
Comments
This decision will limit the scope for defendants to seek contribution against each other where building work has occurred more than 10 years before the claim.
Download to read full decision.