IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY
CIV-2010-485-2116 [2013] NZHC 970
BETWEEN KEITH MICHAEL NEWTON, JOANNE LESLEY DAVEY AND SCOTT MORAN AS TRUSTEES OF THE DAVEY- NEWTON FAMILY TRUST
Plaintiffs
ANDWAYNE PETER STEWART AND LEE- BIN TEE
First Defendants
ANDJAMES PUMIPI MAETANGA HAMMOND
Second Defendant
AND ANDREW JOHN HASTIE
Third Defendant and First Third Party
ANDJOHN MILTON LYTTLE Second Third Party
ANDVALUATION CONSULTANTS NEW ZEALAND LIMITED Third Third Party
Hearing: 21-24 May and 7 June 2012
Counsel: A G Hazelton for Plaintiffs
D A Webb and M H O Maling for First Defendants
No appearance for Second Defendant
M R Sherwood-King for Third Defendant/First Third Party
M Atkinson for Second Third Party
Judgment: 6 May 2013
JUDGMENT OF WILLIAMS J
In accordance with r 11.5, I direct the Registrar to endorse this judgment with the delivery time of 12:30pm on the 6th of May 2013.
KEITH MICHAEL NEWTON, JOANNE LESLEY DAVEY AND SCOTT MORAN AS TRUSTEES OF THE DAVEY-NEWTON FAMILY TRUST V WAYNE PETER STEWART AND LEE-BIN TEE HC WN CIV-2010-
485-2116 [6 May 2013]
Contents
Introduction ............................................................................................................. [1] The facts ................................................................................................................... [5]
The first sale: Hastie to Stewart/Tee ....................................................................[5] Repairs ..................................................................................................................[7] Second sale: Stewart/Tee to Newton/Davey .......................................................[32] Aftermath.............................................................................................................[44] Proceedings and summary judgment ..................................................................[46]
The issues ............................................................................................................... [52] Between plaintiffs and first defendants ...............................................................[52] Between plaintiffs and second defendant ............................................................[55] Between plaintiffs and third defendant (Mr Hastie)............................................[57] Between first defendants and first third party (Mr Hastie) .................................[58] Between first defendants and second third party (Mr Lyttle)..............................[59]
Expert evidence ..................................................................................................... [61] Plaintiffs ..............................................................................................................[62] First defendants...................................................................................................[67] Third defendant/first third party..........................................................................[69] Expert agreements ...............................................................................................[71]
Between plaintiffs and first defendants............................................................... [75] Privity ..................................................................................................................[75] Warranty ..............................................................................................................[80]
Relevant provisions ............................................................................................... [81] Arguments.............................................................................................................. [94]
Analysis .................................................................................................................. [98] Loss ................................................................................................................... [115] Causation ..........................................................................................................[126] Quantum ............................................................................................................[134]
Between plaintiffs and second defendant (Mr Hammond) ............................. [139] Between plaintiffs and third defendant (Mr Hastie)........................................ [157]
Limitations ........................................................................................................[158] Arguments..........................................................................................................[159] Analysis .............................................................................................................[160] Developer? ........................................................................................................[167] Analysis .............................................................................................................[170] Breach and causation ........................................................................................[171]
Between first defendants and first third party (Mr Hastie) ............................ [179] Limitations ........................................................................................................[180] Duty and breach ................................................................................................[183] Causation and contribution ..............................................................................[184]
Between first defendants and second third party (Mr Lyttle) ........................ [188] Duty ...................................................................................................................[190] Res judicata .......................................................................................................[199]
Conclusion............................................................................................................ [200] Between the plaintiffs and the first defendants .................................................[200] Between the plaintiffs and the second defendant (Mr Hammond) ....................[204] Between the plaintiffs and the third defendant (Mr Hastie) ..............................[208] Between the first defendants and the first third party (Mr Hastie) ...................[210] Between the first defendants and the second third party (Mr Lyttle) ................[212]
Introduction
[1] 2 Huxley Grove, Churton Park, Wellington is a leaky home. The owners are the plaintiffs, Keith Newton, his wife, Joanne Davey and their lawyer, Scott Moran. Together they are trustees of the Davey-Newton Family Trust. They now sue Wayne Stewart and Lee-Bin Tee, the couple from whom they purchased in 2004. They rely on the vendors’ warranty that all necessary consents had been obtained by Mr Stewart and Ms Tee for repair work they had done on the dwelling prior to the plaintiffs’ purchase.
[2] They also sue…
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- Newton v Stewart [2013] NZHC 970
- Case
- [2013] NZHC 970
- Decision Date
CaseChat Overview and Summary
The court found that the plaintiffs had standing to sue the first defendants as the nomination of the trustees was properly communicated. However, the claim against the first defendants failed because the repair work on the plant-ons did not require a building consent, and thus, there was no breach of the warranty. Even if this was incorrect, the damages claimed were too remote, and there was insufficient proof of causation. The court also found that the second defendant, James Hammond, was negligent, but the claim failed due to lack of causation. The claim against the third defendant, Andrew Hastie, failed because it was time-barred.
Regarding the first defendants' claims against the first and second third parties, the court found that the claim against the first third party, Andrew Hastie, was not time-barred, and Hastie owed an independent duty to ensure that Building Act 1991 requirements were complied with. However, the claim failed because the first defendants did not heed the warnings about the need to determine the source of the leak, which eclipsed Hastie's breach. The claim against the second third party, John Lyttle, failed because Lyttle did not owe a duty of care to the first defendants, and causation was not established. The doctrine of res judicata did not apply as the decision of the previous judge had been appealed. Costs were reserved.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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