Doh! Read the contract before you sign it!

A recent decision in the High Court in Rotorua illustrates the importance of reading contractual documents prior to signing them. A drilling company was held bound by the terms of an exclusion clause in a contract with a supplier preventing it from recovering all of its losses alleged caused by the supplier negligently carrying out repair work to drilling equipment.

Beating the long-stop?

In a recent decision (Minister of Education & Ors v Carter Holt Harvey Limited [2014] NZHC 681 (4 April 2014) the High Court allowed leaky building claims against a manufacturer of a cladding system to continue to trial even though the claims related to buildings constructed ten years before the issue of proceedings. (PDF)

Government’s Financial Assistance Package falls well short

A recent report on National Radio confirmed that the government’s Financial Assistance Package (“FAP”) to leaky home owners has failed to make even a small dent in the number of leaky homes.

The FAP was established in 2011 as a repair scheme enabling leaky home owners to access funds from the government and participating territorial authorities to fix their homes.  

More on directors and leaky buildings

In the leaky building context, the personal liability of directors of development companies, continues to generate much jurisprudence.  A recent decision of Heath J held that where a director is found to have assumed responsibly for the way in which work is carried out on a building project and defects result, personal liability will likely follow.