Combustible Cladding Class Action Proposed

19 March 2020

An information session hosted by Russell McVeagh was held recently to share details of a class action they are preparing in conjunction with IMF-Bentham in Australia. The BCCG was invited to the meeting.

At the meeting Russell McVeagh requested support to connect with our members whose buildings may contain potentially combustible cladding. It is estimated that up to 150 buildings in Auckland may have suspect cladding under the NZ Building Code. Russell McVeagh provided the copies of the lists prepared by Auckland, Wellington and Christchurch City Councils. Select the relevant city to view the list:

Auckland - Wellington - Christchurch

The Christchurch list does not identify the street address of any of the buildings. However, through searches of public records, they were able to identify that the following Bodies Corporate are on the list:

  • Body Corporate 514800 - 987 Ferry Road, Wollston,
  • Body Corporate 418587 - 295 Blenheim Road,
  • Body Corporate 484053 ­- 71 Gloucester Street,
  • Body Corporate 60118 ­- 28 Gloucester Street.

These lists are publicly available through the respective Council websites. There don't seem to be any records available for other parts of New Zealand.

We are forwarding this information to you so that you can check whether any of the buildings listed are your clients. You may wish to notify them and advise them of the proposed Class Action.

From the information session we noted that:

  • Some BC owners may not be aware they own in an affected building
  • The NZ Insurance Council is aware of the lists and they consider these buildings to be high risk, with implications for both premiums and the ability to source future cover
  • Auckland Council in particular is looking at documenting on the Property File where this cladding is in place - this risks devaluing the apartment complex for future sales
  • The class action is on a "no win no fee" basis so BC's will not have to levy to fund it. If the claim is successful, legal fees, etc. and a percentage of the settlement funds will go the lawyers and funders of the litigation (amounts are confidential to those who sign up)

If your building is identified on one of theses lists and you'd like further information on the class action, please contact either of the following at Russell McVeagh:

Polly Pope <polly.pope@russellmcveagh.com>; or
Gordon Lamb <gordon.lamb@russellmcveagh.com>




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