BODY CORPORATE NUMBER DPS 91535 v 3A COMPOSITES GmbH [2022] NZHC 2355
The application for representative orders was dismissed because the plaintiffs failed to demonstrate sufficient commonality and that the proposed common issue (particularly the allegation that Alucobond PE/Plus are inherently incapable of meeting the Building Code) was a substantial and proportionate basis for representative treatment across the proposed class. The applicants provided inadequate particulars about the intended represented group and their cladding, relied on a potentially contrived, overbroad 'inherent incapability' theory rather than building-specific code assessments, and did not show the representative mechanism would benefit the group without unfair prejudice to...
- Citation
- [2022] NZHC 2355
- Parties
- First Plaintiff: Body Corporate Number DPS 91535; Second Plaintiff: Argosy Property No 1 Limited; First Defendant: 3A Composites GmbH; Second Defendant: Terminus 2 Limited; Third Defendant: Skellerup Industries Limited
- Court
- High Court
- Jurisdiction
- New Zealand
- Judgment Date
- 14 September 2022
- Procedural Posture
- Civil Representative Proceeding (application for Representative Orders Under High Court Rules R 4.24) / Interlocutory Application for Leave to Proceed as Representative Plaintiffs (application Dismissed)
- Outcome
- Application for representative orders under High Court Rules r 4.24 dismissed
- Legal Topics
- Representative Proceedings, Negligence, Duty to Warn, Building Code Compliance, Product Combustibility, Negligent Misstatement, Litigation Funding
Case Brief
Summary, issues, holding and outcome
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Parties
Body Corporate Number DPS 91535
First Plaintiff
Argosy Property No 1 Limited
Second Plaintiff
3A Composites GmbH
First Defendant
Terminus 2 Limited
Second Defendant
Skellerup Industries Limited
Third Defendant
Procedural Posture
Civil Representative Proceeding (application for Representative Orders Under High Court Rules R 4.24) / Interlocutory Application for Leave to Proceed as Representative Plaintiffs (application Dismissed)
Legal Issues
- 1 Whether plaintiffs may proceed as representative plaintiffs under HCR r 4.24
- 2 Whether there is sufficient common interest/shared issues across the proposed class
- 3 Whether Alucobond PE and Alucobond Plus are inherently incapable of meeting Building Code fire-spread requirements
Ratio Decidendi
The application for representative orders was dismissed because the plaintiffs failed to demonstrate sufficient commonality and that the proposed common issue (particularly the allegation that Alucobond PE/Plus are inherently incapable of meeting the Building Code) was a substantial and proportionate basis for representative treatment across the proposed class. The applicants provided inadequate particulars about the intended represented group and their cladding, relied on a potentially contrived, overbroad 'inherent incapability' theory rather than building-specific code assessments, and did not show the representative mechanism would benefit the group without unfair prejudice to...
Court Disposition
Application for representative orders under High Court Rules r 4.24 dismissed
Orders
- The plaintiffs' application for representative orders under r 4.24 is dismissed
- Preliminary view as to costs: Body Corporate Number DPS 91535 and Argosy Property No 1 Limited jointly and severally to pay 2B costs to each of 3A Composites GmbH, Terminus 2 Limited and Skellerup Industries Limited on each step of the application; second counsel allowed for the application
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