News
Precedent-setting leaky building decision upheld
A construction company has been refused leave to appeal a High Court ruling which upheld an order that it must fix leaks in a large Auckland townhouse development.
The Court of Appeal has declined the application for special leave to appeal the High Court decision turning down Downer Construction (NZ) Ltd's challenge to an arbitrator's award in which an order of specific performance was made against Downer.
This was the first time an order for specific performance under a building contract has been made in New Zealand.
Bell Gully partner Christine Meechan, who acted for the developer Silverfield Developments throughout the arbitration and successive High Court and Court of Appeal proceedings, says the Court of Appeal decision is important not just because it upheld the availability of specific performance in building contracts, but also because it dealt with the threshold test of "special leave" under article 5(6) of the Arbitration Act.
Christine Meechan hopes the two parties have reached the end of the litigation process and that the remedial work will be undertaken promptly for the sake of the homeowners and residents.
