NORTH SHORE CITY COUNCIL V BODY CORPORATE 189855 AND ANOR SC 28/2010
The Supreme Court granted leave to appeal to determine whether a local authority exercising functions under the Building Act 1991 owes a duty of care to purchasers (including investor owners, subsequent purchasers and bodies corporate) to ensure building code compliance and to assess the effect of a declined code...
Source-derived case information.
- Citation
- SC 28/2010
- Parties
- Appellant: North Shore City Council; First Respondent: Body Corporate 189855; Second Respondent: P L Hough & Ors
- Court
- Supreme Court
- Jurisdiction
- New Zealand
- Judgment Date
- 13 July 2010
- Procedural Posture
- Appeal (civil) / Leave to Appeal Granted (supreme Court)
- Outcome
- Application for leave to appeal granted by the Supreme Court
- Legal Topics
- Duty of Care, Negligence, Building Act 1991, Building Code, Code Compliance Certificate, Successive Purchasers, Body Corporate Liability
Source-derived case record
Summary, issues, holding and outcome
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Parties
North Shore City Council
Appellant
Body Corporate 189855
First Respondent
P L Hough & Ors
Second Respondent
Procedural Posture
Appeal (civil) / Leave to Appeal Granted (supreme Court)
Legal Issues
- 1 Whether a local authority performing regulatory functions under the Building Act 1991 owes a duty of care to purchasers to ensure building code compliance
- 2 Whether any such duty extends to investor owners, subsequent purchasers after a cause of action has accrued, and the body corporate
- 3 Whether the council's decision to decline to issue a code compliance certificate affects the existence or scope of any duty
Ratio Decidendi
The Supreme Court granted leave to appeal to determine whether a local authority exercising functions under the Building Act 1991 owes a duty of care to purchasers (including investor owners, subsequent purchasers and bodies corporate) to ensure building code compliance and to assess the effect of a declined code compliance certificate; the grant of leave establishes these questions as appropriate for full appellate determination.
Court Disposition
Application for leave to appeal granted by the Supreme Court
Orders
- Leave to appeal granted
- Appeal confined to the approved grounds (i)–(iv) as stated by the Court
Full Case Text
Judgment text and source record
1 paragraphs
NORTH SHORE CITY COUNCIL V BODY CORPORATE 189855 AND ANOR SC 28/2010 13 July 2010IN THE SUPREME COURT OF NEW ZEALAND SC 28/2010 [2010] NZSC 78BETWEEN NORTH SHORE CITY COUNCIL Appellant AND BODY CORPORATE 189855 First Respondent AND P 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 2010JUDGMENT 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