A Court of Appeal judgement over leaky homes has dealt a blow for builders who have been protected by limited liability companies.
The judgement allows residents of Siena Villas apartments in Auckland to sue the owner of the construction company for negligence.
They claim Stephen Taylor, of Strata Buildings Limited, did his work carelessly.
The group's lawyer Tim Rainey says the Appeal Court ruling means they can sue him personally to recover their losses.
"It's a nail in the coffin for developers using limited liability companies as an absolute shelter behind which they can hide," he says.
"But we've got a little way to go before we can sheet this home."
Mr Rainey expects the case to go to trial in October next year.