Cayman Apartments $36 million litigation

A recent Bay of Plenty Times article reports that Cayman Apartments built in Mount Maunganui in 2007, have over time suffered from a number of building defects.

Tauranga Council in 2016 filed a note against the property file advising that the Code of Compliance originally issued "no longer be relied upon". This situation has finally led to proceedings being filed against 16 parties by owners, except one owner who reportedly previously settled a claim against Tauranga Council.

The full text of the article published in the Bay Times can be viewed on the NZ Herald website:
Tauranga's Cayman Apartments defects prompt $36m action against council, developer, builder

Comment from BCCG Vice President

Vice-President of BCCG Tony Brindle works in the industry in the Bay of Plenty and is appalled at the number of cases of faulty construction that have surfaced over recent years, especially in Mount Maunganui.

Tony says "In each of these cases, the anguish of owners is very real and heart-wrenching. The unseen factor though is that these owners themselves form the Body Corporate and they elect a Chair and Committee from amongst themselves to manage the affairs of the Body Corporate on behalf of owners.

The Chair and Committee of the BC face huge pressures in having to mount claims and follow due process to get settlements for the owners they represent. And in some cases, there are disparate views amongst owners on how costs should be shared - the recent Court of Appeal case we advised our members of on 23rd January is an example of this issue [see Oceanside T2].

So BCCG has empathy with all concerned in these matters, especially when the real causes can to a large extent be traced back to construction and compliance sign-offs which were completed before the property was handed over to owners."

PLEASE NOTE:

BCCG recognises that behind each of the examples of Court cases and remediation projects there are not only distressed owners, but BC Chairs and Committees who represent all owners in each example. These Chairs and Committee members find themselves in unenviable positions - having to deal not only with contractors, lawyers, Court cases, consultants and Local Bodies, but then also have to face difficult discussions with owners having divergent views on appropriate decisions especially around cost-sharing. BCCG recognises and has empathy with the plight of all involved in such cases - it is such matters that led to the formation of BCCG. Many of the Executive members of BCCG have personal experience in these matters. BCCG does not give advice to members but does provide pointers as to where the appropriate help may be sourced.

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