Body Corporate 366567 v Auckland Council - [2024] NZHC 32

Body Corporate/unit owners in a 40-storey tower block constructed between 2004-2006 claim remedial and consequential losses associated with 13 alleged fire, structural, extern and internal moisture defects. Whether the Body Corporate was entitled to sue under UTA 2010 and was owed duties of care versus duties owed to unit owners; effect of vendor assignments of claims; whether the Building Act 2004 altered the legal framework; the scope of the duty of care owed by a council and contractors; how the long-stop limitation provisions in s 393 Building Act 2004 operate. Whether each claimed defect existed; whether non-compliance with the Building Code; whether negligence causative of non-compliance with the Building Code. HELD: Claims established for breach of duty of care against Auckland Council in respect of some but not all claimed defects or part defects. Certain defects time-barred under the long-stop limitation provisions as filing of proceedings alleging negligence without particularising a specific defect did not halt limitation. Remedial consequences not determined as the plaintiffs’ proposed scope of work needs to be tailored to the liability findings but some guidance provided on disputed issues such as incidence of GST; loss of profit of hotel operator (dismissed as unclaimable head of loss and remediation scope of two standalone defects determined).