counsel appearing: David Goddard QC, David Heaney SC, Rachel Karalus.
Charter Hall Trustees Ltd the owners of a luxury lodge in Queenstown had originally issued proceedings against the council and Blair & Co Ltd (a designer) seeking to recover losses it had suffered when a fault in a fire place within the lodge led to a fire. The council applied to have the claim against it struck out and sought summary judgment. The high court refused the council’s application. The court of appeal held that the high court had reached the wrong decision and that the orders sought by the council ought to be granted.
Both Charter Hall and Blair appealed that decision to the supreme court. Leave was granted for the appeal to proceed. Shortly, before the appeal Charter Hall withdrew its appeal.
The supreme court revoked the leave that had been granted to Blair to appeal. The supreme court noted that Blair could have served a cross notice on the council at any time prior to Charter Hall abandonment of its appeal but did not do so. The supreme court noted that where a defendant had previously been sued by the plaintiff and found not liable on the merits clearly a claim for contribution cannot succeed.