North Shore City Council v Body Corporate 189855 and others (Byron Avenue)

[2010] NZSC 78

IN THE SUPREME COURT OF NEW ZEALAND

SC 28/2010
[2010] NZSC 78

BETWEENNORTH SHORE CITY COUNCIL

Appellant

ANDBODY CORPORATE 189855

First Respondent

ANDP L HOUGH & ORS

Second Respondents

Court:Elias CJ, Blanchard and McGrath JJ

Counsel:D Goddard QC for Appellant

G B Lewis for First and Second Respondents

Judgment:13 July 2010 

JUDGMENT OF THE COURT (BYRON AVENUE)

A            The application for leave to appeal is granted.

B            The approved grounds are:

(i)Whether and in what circumstances a local authority which performed regulatory functions under the Building Act 1991 in relation to construction of a multi-unit residential development owed a duty of care to purchasers of units in the building to ensure that it complied with the building code.

(ii)         Assuming such a duty exists, whether it extends to:

(a)Such persons who did not themselves at the time of purchase intend personally to occupy their unit(s) (investor owners); and

(b)Persons who subsequently acquired such units from the first purchasers after a claim for breach of duty to their predecessors had accrued; and

(c)         The body corporate.

(iii)Whether the conclusions which would otherwise be reached are affected in circumstances where the Council declined to issue a code compliance certificate.

(iv)In light of the conclusions reached on the foregoing grounds, how these issues should be determined in the particular cases.

Solicitors:

Heaney & Co, Auckland for Appellant

Grimshaw & Co, Auckland for Respondents