North Shore City Council v Body Corporate 188529 and Ors - SC 27/2010

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Summary

Civil Appeal – Whether the Court of Appeal erred in holding that the appellant owed duties of care to the owners and lessees of units in a multi-unit development respectively.  [2010] NZCA 65  CA 673/2008   22 March 2010

Result

A The application for leave to appeal by the North Shore City Council 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 the 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
(iii) In light of the conclusions reached on the foregoing grounds, how these issues should be determined in the particular cases. C  The application for leave to appeal by the Second Respondent, Blue Sky Holdings Ltd, is dismissed with costs of $2,500 to the North Shore City Council.
13 July 2010
___________________________
Appeal dismissed, Costs to the respondents.
17 December 2010

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Additional Information

Hearing date : 8 – 10 November 2010

Elias CJ, Blanchard, Tipping, McGrath, Anderson JJ.