14 July 2005

Auckland City cross appeals Ponsonby Gardens decision

Auckland City has lodged cross appeals in response to other defendants appealing the adjudicator’s decision in the Ponsonby Gardens leaky homes case.

The cross appeals deal with the way the adjudicator has expressed the allocation of liability between the defendants.

The adjudicator’s decisions on the Ponsonby Gardens case were released on 11 March 2005. Auckland City was found individually and jointly liable for a total of $588,000 of the total $702,000 awarded to the claimants. The adjudicator found that Auckland City was independently liable for $128,000 of this $588,000. Auckland City paid the $128,000 to the seven claimants on 20 April 2005. This leaves $460,000 for which Auckland City is jointly liable.

Robert Nelson, acting general manager of finance, said Auckland City had little option but to cross appeal.

“We have sympathy for the Ponsonby Garden homeowners. We are not challenging the $702,000 awarded to them. If we do not take part in these proceedings, we could have some of the damages for which others are responsible awarded against us. Auckland City ratepayers are paying for this. We have a responsibility to make sure that there is fair and equitable distribution of liability between the parties the adjudicator clearly identified as being responsible,” says Mr Nelson.

He said that had the other defendants not appealed, Auckland City would not be cross appealing.

Auckland City has applied to the court to postpone the payment of any outstanding money until the court fixes liability between defendants.

Auckland City is waiting for the court to fix an appeal date.

“We hope a date is fixed as a matter of urgency,” says Mr Nelson.

ENDS

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