Waipa District Council’s Te Awamutu headquarters.
A $6.8 million claim against Waipā District Council and several contractors over a commercial building with weathertightness defects has been settled before it got to a High Court trial.
The council’s share of the confidential settlement to Erinic Investments Ltd – a company owned by Justine and the late Sir Patrick Hogan – was $1.95 million. It paid an additional $475,000 plus GST on legal and building expert fees. None of the costs are covered by insurance.
The News has been following the case since the Hogans’ Cambridge-based company initiated proceedings in the High Court in 2020 against the council and four other defendants alleging the council was negligent in issuing building consents, inspecting the building work and issuing Code Compliance Certificates for a commercial building the company owns.
Erinic Investments was initially claiming at least $2 million in damages with additional losses such as interest and costs.
The Companies Office website still shows Sir Patrick as a 50 per cent shareholder despite his death in January.
The company directors are his wife, two daughters Erin and Nicola and grandson Liam Hunt.
The fixture was due to get underway at the High Court in Auckland on Monday and was set down for a four week trial but was vacated at the request of Erinic Investments’ counsel Grimshaw & Co. Its website describes the firm as dispute resolution experts.
Senior associate David Powell said the firm did not have instructions to provide information to The News “or any other person in the media regarding our client’s claim.”
In a statement, the council said it disputed that it was responsible in any way for the alleged defects.
“Following a mediation between the building owner, the council and the construction parties, the parties have entered into a confidential full and final settlement agreement.
“The Council has reviewed, and is continually reviewing, its consenting processes,” the statement said.
The council is facing another long-standing legal action filed at the Te Awamutu District Court five years ago.
It involves Kihikihi couple Wayne and June Atkinson and dates back to 2001 when the council completed stormwater system work in the town.
The action before the High Court in Hamilton says council has been negligent, breached its statutory duty and created a nuisance in relation to a private drain on the plaintiffs’ property in Kihikihi. The Atkinsons are seeking more than $2.5 million in damages, interest and costs.
That case is set down for a five-day fixture starting May 27 next year at the High Court in Hamilton.
