In December, the Court of Appeal determined that former Kingdom Residential Housing managing director Colin Dallas made a misleading statement in a letter to the Wellington City Council about fixing defects (click here for the judgment). The Court of Appeal overturned the High Court’s dismissal of the claim against Mr Dallas and awarded the Council $273,000. The Council had taken the action to recover some of the $670,000 it paid out to settle a leaky building claim.
This case was unusual in that Mr Dallas was not personally involved in the construction of the relevant home, but he provided a written response assuring the Council that issues raised by council inspectors had been addressed. Mr Dallas has said that in doing so he relied on information provided from a building supervisor employed by Kingdom. However, the Court found that he did not tell the council that he was merely passing on information and did not have first-hand knowledge. The Council issued a code compliance certificate on the basis of that information provided by Mr Dallas.
The Dominion Post now reports that in addition to the $273,000 award Mr Dallas has also been ordered to pay more than $90,000 of the Council’s court costs. To read more on this decision see the following links: ‘WCC takes leaky home builder to court‘ ‘Wellington leaky home case could be settled for 270k‘