New Zealand Case Law: Decisions & Judgments

Topic

Pre-purchase inspection

Legal area

Court

9 Jul 2021

ROBERTS v JULES CONSULTANCY LIMITED (IN LIQUIDATION) [2021] NZCA 303

Citation

(2021) 16 TCLR 85
Court

Court of Appeal

The Court affirmed the correct measure under s 43 is the claimant's reliance loss (difference between purchase price paid and market value of the property as properly described at the relevant assessment date), upheld assessment proximate to the date of breach (2014) rather than 2019, found the purchaser breached the duty to obtain a specialist pre-purchase report and to seek body corporate minutes and thus contributed causally to his loss, and increased the deduction for contributory negligence from 15% to 40%, resulting in a reduced damages award ($66,000 plus $15,000 general damages).
21 Mar 2014

BODY CORPORATE 90247 v MANFRINI LIMITED [2014] NZHC 295

Citation

[2014] NZHC 295
Court

High Court

Court held Council negligent: the 1 June 2001 CCC for consent 71330 certified the whole building, Council inspections were inadequate and the CCC should not have been issued; 1996 consent (15997) had not lawfully lapsed or been validly cancelled; limitation did not bar the negligent issue of the June 2001 CCC; solicitors and private pre-purchase inspectors were not found liable or to have broken causation; plaintiffs entitled to damages — primary measure adopted was diminution in value with alternative remediation findings provided; judgment entered for plaintiffs against Wellington City Coun…
15 Feb 2013

HEPBURN & ORS V CUNNINGHAM CONTRACTS LIMITED & ANOR HC WN CIV-2011-485-1308

Citation

openlaw-79c78a4c_a4c7_4b8b_88be_0b2bdf5d4a3e.pdf
Court

High Court

The inspector (Trevor Cunningham) contracted personally with the plaintiffs and, having certified compliance with NZS4306:2005, owed an obligation to identify significant observable faults and weathertightness risk factors in a basic visual inspection and to communicate their implications in plain terms; he breached that duty by failing to identify and explain several obvious risk features and defects; causation was established because, but for the deficient advice, the plaintiffs would not have completed the purchase; plaintiffs were partly at fault and damages are reduced by 50%; the Fair T…
11 Feb 2013

JOHNSON V AUCKLAND COUNCIL HC AK CIV-2010-404-837

Citation

openlaw-5005982f_806f_40bb_9324_6d5e071d1406.pdf
Court

High Court

Plaintiffs were contributorily negligent because they failed to take reasonable steps (inspect council records, obtain pre-purchase/building reports or negotiate protective contractual conditions) despite evident risk indicators and the peculiar circumstances of a mortgagee sale; causation established between plaintiffs' failures and their economic loss; measure of damages for the council's tortious negligence is the difference between purchase price and market value of the property in its defective state at date of purchase (diminution in value), and plaintiffs' recoverable sum is reduced to…
11 Dec 2008

M C GOODACRE, WYNDHAM TRUSTEES LTD AND BIZ CO TRUSTEE NO. 2 AS TRUSTEES FOR THE GOODACRE INVESTMENT TRUST V NICHOLAS P SIMMONS HC AK CIV 2006-404-001693

Citation

openlaw-d1c5401b_d756_48f6_a89f_18dd2dcc318f.pdf
Court

High Court

The defendant was negligent in the pre-purchase inspection; plaintiffs established causation and the appropriate quantum of principal, special and general damages; the court awarded those amounts plus costs and allowed a credit for the prior settlement, resulting in judgment for $236,233.64 inclusive of costs and disbursements.

New Zealand Case Law

ROBERTS v JULES CONSULTANCY LIMITED (IN LIQUIDATION) [2021] NZCA 303

BODY CORPORATE 90247 v MANFRINI LIMITED [2014] NZHC 295

HEPBURN & ORS V CUNNINGHAM CONTRACTS LIMITED & ANOR HC WN CIV-2011-485-1308

JOHNSON V AUCKLAND COUNCIL HC AK CIV-2010-404-837

M C GOODACRE, WYNDHAM TRUSTEES LTD AND BIZ CO TRUSTEE NO. 2 AS TRUSTEES FOR THE GOODACRE INVESTMENT TRUST V NICHOLAS P SIMMONS HC AK CIV 2006-404-001693