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Stent v Body Corporate 324525 [2020] NZDC 12662

Published 29 March 2022

Appeal against tribunal decision — Tenancy Tribunal — unit titles — leaky buildings — Unit Titles Act 2010, ss 47, 128 & 131 — Small & Ors v Body Corporate 324525 [2018] NZHC 19 — Body Corporate 188529 v North Shore City Council [2008] 3 NZLR 479 (HC) — Body Corporate 207624 v Grimshaw & Co [2020] NZHC 34. This was an appeal against a Tenancy Tribunal decision dismissing the appellant's application for money together with interests and costs to be paid to her by the Body Corporate (BC). There was a long litigation history, beginning in 2013, in relation to the apartments, which were "leaky buildings". The applicant had purchased one unit in 2014 at a significant undervalue, knowing it to have weathertightness issues. She had purchased on the arrangement that the vendors would remain plaintiffs in the proceeding but she would run the case and share in the proceeds of the claim. The appellant did not have a claim in her own right, and the vendors could not sue for the cost of repairs as they no longer owned the unit; they could only sue for loss of value caused by the defects. The district council had settled with the BC paying out $916,750. The BC then decided to distribute the funds to the unit owners. The appellant was excluded from this payout as it was stated she had not had any part in "raising" the funds and was not a claimant. Counsel for the BC argued that the appellant would be "doubledipping" were she to receive a payout, as she had already purchased the unit at an undervalue. There was a final issue of unpaid levies which was to be determined by the Tenancy Tribunal by way of rehearing. The Judge agreed with this argument and with the Tenancy Tribunal decision, and dismissed the appeal. Costs were reserved. Judgment Date: 6 July 2020.

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