BODY CORPORATE 346799 v KNZ INTERNATIONAL CO LIMITED [2017] NZHC 511

BODY CORPORATE 346799 v KNZ INTERNATIONAL CO LIMITED [2017] NZHC 511

The Court found KNZ (developer) and Multiplex (head contractor) each liable for the cladding, balcony, podium and passive fire protection defects by breaching non-delegable and/or independent duties of care, dismissed KNZ's limitation and contributory negligence defences for lack of evidence, accepted plaintiffs' quantum for remedial costs, consequential losses and general damages in the amounts assessed, apportioned liability 85% to KNZ and Multiplex and 15% to Auckland City Council, and granted the Council contribution judgment for 85% of its settlement from KNZ and Multiplex together with interest and costs.

Citation
[2017] NZHC 511
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: FACADE DESIGN SERVICES LIMITED; Fourth Defendant (discontinued): PBS CONTRACTING LIMITED (IN LIQUIDATION); Fifth Defendant: AUCKLAND CITY COUNCIL; Sixth Defendant (discontinued): BOSTIK NEW ZEALAND LIMITED; First Third Party (discontinued): STEPHEN MITCHELL ENGINEERS LIMITED; Second Third Party (discontinued): STEPHEN MITCHELL; Third Third Party (discontinued): CITY DESIGN LIMITED; Seventh Third Party (discontinued): WILLIS NEW ZEALAND LIMITED
Court
High Court
Jurisdiction
New Zealand
Judgment Date
7 March 2017
Procedural Posture
Building Defects / Negligence (claims Under Building Act and Common Law) / Hearing Concluded; Judgment Delivered (interim 7 Mar 2017; Final 22 Mar 2017)
Outcome
Court entered judgment finding KNZ and Multiplex liable for building defects and awarding damages to plaintiffs; dismissed KNZ limitation/contributory defences; apportioned liability 85% to KNZ/Multiplex and 15% to Auckland City Council; granted Council contributory judgment against KNZ and Multiplex for 85% of its...
Legal Topics
Developer Non Delegable Duty, Head Contractor Duty of Care, Cladding Defects, Balcony Waterproofing, Podium Waterproofing, Passive Fire Protection, Apportionment of Liability, Contribution and Settlement Effect, Quantum and General Damages, GST Treatment
Tort Construction Law Building Regulation Contract Law Property Law Civil Procedure Developer Non Delegable Duty Head Contractor Duty of Care +8 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

FACADE DESIGN SERVICES LIMITED

Third Defendant

PBS CONTRACTING LIMITED (IN LIQUIDATION)

Fourth Defendant (discontinued)

AUCKLAND CITY COUNCIL

Fifth Defendant

BOSTIK NEW ZEALAND LIMITED

Sixth Defendant (discontinued)

STEPHEN MITCHELL ENGINEERS LIMITED

First Third Party (discontinued)

STEPHEN MITCHELL

Second Third Party (discontinued)

CITY DESIGN LIMITED

Third Third Party (discontinued)

WILLIS NEW ZEALAND LIMITED

Seventh Third Party (discontinued)

Procedural Posture

Building Defects / Negligence (claims Under Building Act and Common Law) / Hearing Concluded; Judgment Delivered (interim 7 Mar 2017; Final 22 Mar 2017)

Legal Issues

  1. 1 Whether developer (KNZ) owed non-delegable duty of care to subsequent purchasers
  2. 2 Whether head contractor (Multiplex) owed non-delegable or independent duty of care and breached it
  3. 3 Whether specific defects (Eterpanel cladding cracking, balcony membrane failure, podium waterproofing, passive fire stopping) breached Building Code clauses B1, B2, E2, C3

Ratio Decidendi

The Court found KNZ (developer) and Multiplex (head contractor) each liable for the cladding, balcony, podium and passive fire protection defects by breaching non-delegable and/or independent duties of care, dismissed KNZ's limitation and contributory negligence defences for lack of evidence, accepted plaintiffs' quantum for remedial costs, consequential losses and general damages in the amounts assessed, apportioned liability 85% to KNZ and Multiplex and 15% to Auckland City Council, and granted the Council contribution judgment for 85% of its settlement from KNZ and Multiplex together with interest and costs.

Court Disposition

Court entered judgment finding KNZ and Multiplex liable for building defects and awarding damages to plaintiffs; dismissed KNZ limitation/contributory defences; apportioned liability 85% to KNZ/Multiplex and 15% to Auckland City Council; granted Council contributory judgment against KNZ and Multiplex for 85% of its...

Orders

  • Judgment for plaintiffs against KNZ International Co Limited and Brookfield Multiplex Constructions (NZ) Ltd (in liquidation) for the plaintiffs' claims in the amounts set out in the judgment schedule and annexes
  • KNZ and Multiplex jointly and severally liable for 85% of the Council's settlement payment to plaintiffs; pay 85% of that settlement amount to the Council with interest at the Judicature Act rate from date of settlement