The Court of Appeal has ruled landlords deserve the same care and protection from councils as owner-occupiers when it comes to leaky building problems.
The North Shore City Council has failed in a bid to overturn two High Court decisions awarding millions of dollars in compensation to owners of leaky apartment developments.
For the past six years, the owners of the Byron Avenue apartments and Sunset Terraces on Auckland's North Shore have been mired in a legal scrap with the council, regarded as a test case for local bodies nationwide.
The council argued that unlike vulnerable owner-occupiers, investor-owners buying into large commercially-constructed residential units should be able to protect their own interests.
However, the Court of Appeal on Monday found they have the same right to claim damages. The council says it may appeal to the Supreme Court.
The president of the Court of Appeal, Justice William Young, has suggested it is time for the Government to intervene to resolve the leaky homes crisis, rather than leave it to the courts.
In a postscript to one decision, Justice Young says he shares the concern of other judges over the systemic problem of leaky buildings and believes it requires initiatives beyond those to which the courts can contribute.
The vice-president of the Property Investors Federation says the decision has major implications for the owners of the country's 600,000 residential rental properties.
Andrew King says in many cases, landlords have sunk their life savings into properties and the financial and emotional strain of being stuck with a leaky building is huge.
Considering appeal
North Shore mayor Andrew Williams says the Government should step up and do more to resolve the issue of compensation for leaky-home owners.
Mr Williams says the leaky-homes situation is a major national disaster.
The council is considering whether to appeal against the Court of Appeal decision.
