BODY CORPORATE 346799 v KNZ INTERNATIONAL CO LIMITED [2017] NZHC 543

BODY CORPORATE 346799 v KNZ INTERNATIONAL CO LIMITED [2017] NZHC 543

The Council was entitled to recover a substantial portion of its expert fees and associated disbursements from KNZ and Multiplex on its successful cross claim, but facilitator costs for experts' conferences were not recoverable from those defendants and fees solely related to the Council's liability were excluded;...

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Citation
[2017] NZHC 543
Parties
First Plaintiff: BODY CORPORATE 346799; Second Plaintiffs: HA THI HOANG & ORS; First Defendant: KNZ INTERNATIONAL CO LIMITED; Second Defendant: BROOKFIELD MULTIPLEX CONSTRUCTIONS (NZ) LIMITED (IN LIQUIDATION); Third Defendant: FAÇADE DESIGN SERVICES LIMITED; Fourth Defendant: PBS CONTRACTING LIMITED (IN LIQUIDATION); Fifth Defendant (council): AUCKLAND CITY COUNCIL; Sixth Defendant: BOSTIK NEW ZEALAND LIMITED
Court
High Court
Jurisdiction
New Zealand
Judgment Date
24 March 2017
Procedural Posture
Civil Cross Claim Within Construction/building Defects Litigation / Costs Judgment Following Decision on Cross Claim (judgment Delivered 22 March 2017; Costs Detailed 24 March 2017)
Outcome
Judgment given for the fifth defendant (Auckland City Council) in its cross claim against the first defendant (KNZ) and the second defendant (Multiplex); costs awarded to the Council with detailed apportionment
Legal Topics
Costs Assessment, Apportionment of Expert Fees, Disbursements, Scale Costs, Cross Claim Liabilities
Civil Procedure Costs Construction Law Evidence Costs Assessment Apportionment of Expert Fees Disbursements Scale Costs +1 more

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Parties

BODY CORPORATE 346799

First Plaintiff

HA THI HOANG & ORS

Second Plaintiffs

KNZ INTERNATIONAL CO LIMITED

First Defendant

BROOKFIELD MULTIPLEX CONSTRUCTIONS (NZ) LIMITED (IN LIQUIDATION)

Second Defendant

FAÇADE DESIGN SERVICES LIMITED

Third Defendant

PBS CONTRACTING LIMITED (IN LIQUIDATION)

Fourth Defendant

AUCKLAND CITY COUNCIL

Fifth Defendant (council)

BOSTIK NEW ZEALAND LIMITED

Sixth Defendant

Procedural Posture

Civil Cross Claim Within Construction/building Defects Litigation / Costs Judgment Following Decision on Cross Claim (judgment Delivered 22 March 2017; Costs Detailed 24 March 2017)

Legal Issues

  1. 1 Whether and to what extent expert fees and other disbursements incurred by the Council are recoverable from KNZ and Multiplex on the Council's successful cross claim
  2. 2 Appropriate apportionment of expert costs between the Council and the two defendant builders
  3. 3 Whether facilitator fees for experts' conferences are recoverable from KNZ and Multiplex

Ratio Decidendi

The Council was entitled to recover a substantial portion of its expert fees and associated disbursements from KNZ and Multiplex on its successful cross claim, but facilitator costs for experts' conferences were not recoverable from those defendants and fees solely related to the Council's liability were excluded; after apportionment the recoverable expert fees were fixed at $114,992.84 against each defendant and the total costs payable were fixed at $145,131.92 from KNZ and $140,463.72 from Multiplex.

Court Disposition

Judgment given for the fifth defendant (Auckland City Council) in its cross claim against the first defendant (KNZ) and the second defendant (Multiplex); costs awarded to the Council with detailed apportionment

Orders

  • Auckland City Council awarded costs in respect of its successful cross claim
  • KNZ INTERNATIONAL CO LIMITED ordered to pay NZD 145131.92 to Auckland City Council