Gauld v Waimakariri District Council (HC)

This was a professional liability “leaky building” case with a twist. The house was built in the early 1990s but the final inspection was not requested until 2005. The plaintiff assumed that the house had passed the final inspection but in 2009 discovered this was not the case. He subsequently sued the council.  We argued that the council had no liability for the cost of the work required to achieve code compliance and could only be liable for the difference between the cost of the work in 2005 and 2009. The plaintiff received damages of only $6,000 because the damages awarded were calculated on loss of chance principles and were reduced by a further 25% for the plaintiff’s contributory negligence. The council was ordered to pay only a tiny fraction of the amount sought.