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'Devastated' leaky apartment owners sue for $12.7 million

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  • PC
    replied
    This from the liberal left?
    Welcome to the right side!
    (Just not too far right please).

    Leave a comment:


  • TheLiberalLeft
    replied
    I consider 5% to be a shock increase for two reasons. 1) The super city was touted as bringing savings, and 2) this is well above inflation.

    If there are further increases I expect a rates revolt. Don't pay the bastards. What are they going to do?

    This is on top of the news of all the fat payouts to various individuals - The ex-Rodney chief exec to name one. The old mayor, Penny, deserves a good slap over that one.

    Leave a comment:


  • eri
    replied
    "It's hard to determine the liability of the new Super City in Auckland on this but it's going to be very significant - billions of dollars," Mr Gray predicted.
    Inadequate funds had been set aside and shock rate increases were inevitable, he said. "Councils have been unrealistic, trying to ringfence themselves against claims.


    http://www.nzherald.co.nz/nz/news/ar...ectid=10695044

    Leave a comment:


  • CJ
    replied
    Originally posted by flyernzl View Post
    Details of the settlement were shrouded in secrecy, with all parties bound by strict confidentiality agreements

    I always find it interesting how these secrecy clauses seem to crawl into such agreements entirely of their own volition,without actually being inserted by any of the parties involved . . . or so it would seem[I].
    With so many parties involved I am not sure how it can stay quiet. It only really works when there are 2 parties involved.

    Leave a comment:


  • baiba
    replied
    What comes around, goes around!

    Leave a comment:


  • flyernzl
    replied
    Details of the settlement were shrouded in secrecy, with all parties bound by strict confidentiality agreements

    I always find it interesting how these secrecy clauses seem to crawl into such agreements entirely of their own volition,without actually being inserted by any of the parties involved . . . or so it would seem.

    And they are always 'strict'.
    How about an occasional unstrict confidential agreement?

    Leave a comment:


  • Davo36
    replied
    Well know we need to know what the settlement was. What was agreed between the parties? I guess it might come out in the fullness of time.

    Leave a comment:


  • Xav
    replied
    Looks like it has settled

    Last-ditch mediation has settled a $12.7 million leaky building claim days before a 10-week hearing was due to start.

    The body corporate representing owners of the Stadium Gardens apartments on Wellington's Thorndon Quay lodged a claim for damages from eight parties in what is believed to be the city's biggest leaky building claim.

    The defendants included the developer, construction company, Wellington City Council, architects and engineers. Costs for repairing leaks, mould and rot were estimated at more than $11m, with another $1m for legal fees and other costs.

    The hearing was due to begin in the High Court at Wellington yesterday, but was adjourned after three minutes because the parties reached agreement through mediation on Friday.

    Details of the settlement were shrouded in secrecy, with all parties bound by strict confidentiality agreements, body corporate lawyer Dan Parker said yesterday. "A settlement that was reached settles the whole dispute involving all parties."

    Earlier attempts at mediation failed to reach an agreement.

    Body corporate chairman John Weiss Jr said the proceedings began in 2007, and the settlement was a relief. "Very pleased to have it resolved and we can look forward to remediation." Scoping for the repair work had been done, but no construction had started, he said.

    Holmes Construction Wellington was among the defendants. Managing director Tim Holmes said he was happy the owners had got a good result. He would not comment on the settlement details but said it was "fair".
    The city council declined to comment.

    Problems with cladding on the building, built in 2001-02, have forced some apartment owners to sell at a loss, because of continuing costs. One couple had to let their apartment and move into cheaper accommodation.
    In June an Oriental Parade apartment block, with an estimated repair bill of $4m, also settled out of court in a confidential settlement.

    The other defendants in the Stadium Gardens claim were Edgewater Apartments (in liquidation), James Hardie (building product supplier), K Road No 1 (exterior coating application), and Beca Carter Hollings and Ferner (engineers).

    Omega Windows (1992) was a third party. It is separate to Omega Industries, which also does aluminium joinery
    Source

    Leave a comment:


  • 'Devastated' leaky apartment owners sue for $12.7 million

    'Devastated' leaky apartment owners sue for $12.7 million

    Owners of a block of Thorndon apartments are claiming $12.7 million in what's believed to be Wellington's biggest leaky building claim.

    The body corporate representing owners of the Stadium Gardens apartments on Thorndon Quay are claiming against the developer, builder, architect, Wellington City Council and companies involved in supplying and fitting cladding materials and windows.

    Mediation of the leaky-building claim failed last year. The case is now set down for a 10-week hearing in the High Court, starting in August.

    Problems with leaks, mould, rot and the costs of fighting their case had put personal and financial stress on many of the 90 families who own apartments in the building, said acting body corporate chairwoman Mary Meyers.

    "The impact of this has been quite devastating for many people," said Ms Meyers, who owns a first-floor apartment. She said that, although the apartment had not leaked, she and her husband had to meet their share of the estimated $1m spent so far on maintaining the building and mounting the case.

    Ms Meyers, who works as an executive assistant, said they were forced to move into cheaper rented accommodation and let their apartment so they could afford their share of the costs. These had so far run to about $35,000.

    "We don't live in our apartment as we can't afford to. We rent it out so that we can pay for the fees and we rent another apartment at a cheaper rate. This is quite prevalent throughout the building.

    "Basically, the whole building needs to be reclad. The cladding system on the building has failed."

    She said residents had to continue with the claim to ensure the building was fixed. Many people were forced to stay or else take a big loss on the $350,000 to $800,000 they paid when the development opened about five years ago.

    This was confirmed by Tommys agent John Kettle, who earlier this year listed a property with a buyer inquiry price of $295,000. He said the owners paid $421,000 for the apartment in 2005 and, if it wasn't for the "wart" that was associated with the block, it would probably be worth about $500,000.

    The low asking price drew a lot of inquiries and it was under offer. Those who inquired were told the details and it would sell only to someone who was prepared to take a risk that the case would be settled. If it wasn't, the buyer would be liable for a further $160,000 towards the cost of repairing the building.

    The former Survey and Land Information Department offices, known as Terralink House, was converted to apartments in a project that started about 2002.

    WHAT'S WRONG WITH STADIUM GARDENS?

    The body corporate representing apartment owners is claiming:

    * Claddings were not installed properly and are not watertight.

    * Untreated timber is rotting and there is a mould problem.

    * Roof was not built as designed and rubber seals are leaking.

    * Windows and doors don't meet design requirements.

    * Water gets in around window frames and joints, seals are defective and wind whistles through gaps, decks and balconies leak.

    The bill: Repair costs more than $11 million, legal fees and other costs more than $1m.

    Who is being sued: Edgewater Apartments (in liquidation), developer Holmes Construction Wellington, Peddle Thorp & Montgomery architects, Wellington City Council, James Hardie (building product supplier), K Road No 1 (exterior coating application), Omega Windows.
    __________________________
    This saga has been going on for many years locally, and I think it has all just been settled confidentially.

    I have heard that the developer put the project together for $8 million. But the repair work is going to cost $13 million !!!!!!!!!!!!!!!!
    Last edited by spurner; 05-08-2010, 12:32 AM.
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