IN THE HIGH COURT OF NEW ZEALAND WHANGAREI REGISTRY
I TE KŌTI MATUA O AOTEAROA WHANGĀREI-TERENGA-PARĀOA ROHE
CIV-2017-488-62
[2018] NZHC 3170
BETWEEN KAREN URLICH, RANDOLPH IVAN FRANCIS URLICH and BOI TAXATION TRUSTEE COMPANY LIMITED
Plaintiffs
AND
FAR NORTH DISTRICT COUNCIL
First Defendant
GLOBAL FIBRE8 LIMITED
Second DefendantSTEPHEN MICHAEL BARCLAY
Third Defendant
Hearing: 29 November 2018 Appearances:
J E G San Diego and L A J Gould for the Plaintiffs No appearance by or for the Defendants
Judgment:
4 December 2018
JUDGMENT OF PALMER J
This judgment was delivered by me on 4 December 2018 at 3.00p.m. pursuant to r 11.5 of the High Court Rules 2016.
Registrar/Deputy Registrar
……………………………………
Solicitors:
Doug Cowan Barristers & Solicitor, Auckland
URLICH v FAR NORTH DISTRICT COUNCIL [2018] NZHC 3170 [4 December 2018]
Summary
[1] Ms Karen Urlich and Mr Randolph Urlich wanted to build their dream home on the Karikari Peninsula in Northland in 2015. Global Fibre8 Ltd (GF8) sold them a new wall panel system, K3T, and designed plans and specifications for its installation. The product, the plans and the specifications were defective. The Urliches brought proceedings against a number of parties. All defendants settled except GF8, which had taken no steps in the proceeding since their lawyers withdrew in March 2017.
[2] On the basis of the evidence offered by the Urliches in a formal proof hearing, I conclude GF8 was negligent and engaged in misleading and deceptive conduct in supplying the K3T to the Urliches and designing the plans and specifications for its installation in their house. GF8 is liable for $64,464.04 in special damages for the outstanding amount of the Urliches’ loss and $20,000 in general damages for their distress and inconvenience plus interest and costs.
What happened?
Building a dream home
[3] In 2015, the Urliches started to plan a new home at 245 Tokerau Beach Road on the Karikari Peninsula. Mr Tangi Tuake, the sole director and shareholder of GF8, took them on a factory tour, promoting GF8’s pre-fabricated wall panel system, K3T, which was launched in August 2015. He was a compelling host.
[4] Mr Tuake told the Urliches K3T had a Codemark Certificate of Conformity from the Joint Accredited System of Australia and New Zealand. It did. He also told them that meant K3T was a tested and approved building material in New Zealand.1 It did not. But his advice was consistent with the explanation on GF8’s website that the CodeMark Certificate was “a guaranteed acceptance by the regulatory bodies that “demonstrates alignment with mandatory compliance requirements”.2 It was not. In fact, the Codemark Certificate only purported to establish compliance with the
1 Affidavit of Karen Urlich of 23 November 2018 at [17].
2 At [20] and Exhibit H.
Australian Building Code, and even then required installation subject to a particular installation guide.
[5] Mr Tuake told the Urliches K3T did not burn, did not absorb water and could hold a screw with a 50-kilogram weight.3 The website stated K3T’s “key features” are that…
Keep reading for free
Create a free CaseChat account to read Urlich v Far North District Council and more:
- Read every judgment in full
- Ask AI and get answers linked to paragraphs
- See how each paragraph was cited in later cases
- Download judgments as PDF or Word
One click creates your free account or signs you in.
By continuing you agree to the Terms and Privacy Policy.
- Case
- [2018] NZHC 3170
- Decision Date
CaseChat Overview and Summary
The court found that GF8 was negligent and engaged in misleading and deceptive conduct. The court held that GF8 breached its duty of care in supplying K3T to the Urliches and in designing the plans and specifications for the Urliches' house. The expert evidence showed that K3T was a defective product and did not comply with the New Zealand Building Code, and GF8's design of the Urliches' house was defective. The court also found that GF8 engaged in misleading and deceptive conduct in its characterisation of the qualities of K3T and the status of the Codemark Certificate in complying with New Zealand regulatory requirements. The reasonable customer would have been likely to have been misled and deceived, and the Urliches were actually misled and deceived. This was clearly an effective cause of their loss.
The court ordered GF8 to pay the Urliches $64,464.04 in special damages for the outstanding amount of their loss, $20,000 in general damages for their distress and inconvenience, interest on the total amount of damages from 2 June 2016 to the date of judgment, and costs on a 2B basis and reasonable disbursements.
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.