An Auckland council is taking a test case on leaky building problems in commercial developments to the Supreme Court.
Earlier this year, the North Shore City Council failed in its bid to overturn two court rulings awarding millions of dollars in damages to the owners of two developments.
The Court of Appeal rejected the council's argument that people buying into large commercially constructed residential units should be able to protect their own interests. Now, however, the Supreme Court has given the council leave to lodge an appeal.
A group advocating for people with leaky homes says the council is shirking its moral and legal responsibilities by dragging claimants through a marathon legal battle and claiming no duty of care to subsequent owners.
Association president John Gray says councils must accept the blame for failing to enforce building standards.
North Shore mayor Andrew Williams denies however that his council is trying to shirk its responsibilities. He says it's unfair that dodgy developers disappear, leaving local councils to foot the bill.
If the appeal succeeds, Mr Gray says, thousands of owners of leaky properties nationwide will not be able to claim damages from councils.
