DECISIONS

This case concerned who was to be held responsible for building defects (leaks) in the Kilham Mews apartment block (Mr Gailor, Kilham Mews Limited, or the Auckland City Council). 

Mr Gailor claimed that he had no personal responsibility for the development.  He said that Kilham Mews Limited, which was the legal owner of the development, was also its developer and should therefore be held liable. 

On 22 December 2008 the high court disagreed, deciding that Mr Gailor was in fact the developer.  The court said that the company was no more than a bare trustee that held the ownership passively.  On the other hand, the court said, Mr Gailor played an active role in the development and had a degree of control over its outcome that meant that he should attract responsibility.  Further, Mr Gailor was also the project manager.  He should therefore incur the same liability as builders, architects and engineers.

The court decided that Mr Gailor would attract 80% of the liability and the council the remaining 20%.

On 16 December 2008 the high court issued a decision from an appeal from the Weathertight Homes Tribunal (the tribunal) brought by the homeowner against the findings of the tribunal that the council had not breached the duty of care it owed the homeowner and that the homeowner should pay the costs of the respondent parties.

The appeal was dismissed.