Leaky Homes

I thought I would blog on the leaky home process I went through as a guide for the other poor souls who are facing the same issue.  What follows is a very brief history as the whole process took a very long time.

IMPORTANT - register immediately with the Weathertight Homes Resolution Service ("WHRS").  You have to claim within 10 years of your house being built.  Plus, under common law, you have to claim within 6 years of finding the problem.  Registering with the WHRS is regarded as making your claim and stops the clock.  In my instance, the house was built in 1998 and I registered in 2005.  The final mediation and settlement was in July 2011 which is 13 years after the house was built and 6 years since the problem was discovered, but having "stopped" the clock, the time delay did not matter (legally).

After registering, the WHRS sent out an inspector and they carried out 2 inspections with probes, producing a huge detailed report.  I went to the best leaky home lawyers in town.  They advised I hire an inspection firm and have an invasive examination (where they cut holes in the cladding) as the WHRS inspectors were not very good and had a record of badly under-estimating the cost to repair.

Was given a list by the lawyer and started at the top.  The first 3 declined saying they were too busy.  Finally found one who could do the inspection within a week.  HINT - make sure you ask the hourly rate and compare - they vary hugely.  Inspection was again conducted and found many areas the WHRS had missed.  The estimate of costs was almost twice that of the WHRS.  I hired the inspection firm to act as my project managers and to supervise the repairs. 

HINT - you could save substantial costs here if you have the time and ability to act as your own project manager.  However, he helped me redesign the house, supervised the builders and council through every critical weathertight issue (well outside my area of expertise) and ensured every thing was done properly, albeit at a huge cost and some suggestion that I was ripped off.

After some time of redesigning etc as I was not prepared to reclad in the same system and went for weather boards, funding issues, family issues (both my family and the project managers) we finally selected a large repair company.  With hind sight I can say the choice was brilliant and the foreman they put in charge was an old- fashioned chippy who would not accept a sloppy piece of work anywhere and was a great guy as well.  HINT - repair and then claim if you can afford it as until the cladding is all off, you do not have an accurate handle on the costs to repair.  Ours were out by 30%.

So, finally finished after 6 months and the family having to move out and back in.  The details and photos of the repairs and costs are given to my lawyers.  The opposing council hires the biggest firm in town, the builders hire the second biggest.  So the tennis match starts with information, delaying tactics and of course bills going in all directions.  After 2 years we finally get to mediation under the WHRS.

My lawyer warns me to keep my mouth shut and not say anything no matter how provoked unless he asks me directly.  The WHRS mediator starts proceedings (she turns out to be completely useless through the day).  My lawyer outlines our claim, then the builders' lawyer states their case and it starts as a slag off of me and everything I have done to fix my house.  The council's laywer is next and the first thing she does is to apologise to me and my family for putting us through the whole problem!  I was gob smacked.

For the next 3 hours, the builders' lawyers and building experts slandered me, impugned my every action, indulged in nit picking points of law  and made derisory offers of about a quarter of what I it had cost (all up including interest on borrowings, alternative accommodation etc).  The parties leave the room and have discussions re what they will offer/accept and so on.

We left for lunch and returned to more point scoring and insults, including one from their inspection firm saying "If you wanted too keep costs down you shouldn't have employed a Rolls Royce project manager."  My project manager went ape shit and gave him his pedigree back.  I bit my lip and wanted to point out we are talking about a large house in one of Auckland's best suburbs.

Finally, we left the room again and my lawyer said you should offer $X on a take it or leave it basis.  This was for 2/3 of what I had spent.  I was rather upset.  He advised I might get a further 10-20% if I went to a hearing of the WHRS but it would cost me about that to go to a hearing and there was no guarantee I would get the extra I wanted as the WHRS tribunal chairs tend to be lawyers who cannot make it in private practice and so tend to the poor end of the quality spectrum.  The final step is the High Court which would cost at least $100k and could be appealed.  So I caved in.  The other side accepted and the matter was settled.

The lawyer for the original builders comes over and shakes my lawyer's hand and then comes to me.  As a gentleman, I stand and shake her hand.  The council's lawyer comes over and I do the same.  I stand and said to her "I appreciated the apology.  No one other than you has ever apologised for the 6 years of hell my family has gone through."

Next, over comes the General Manager of the original builders who had sat there with his lawyers.  I remained seated, he sat down next to me and putting out his hand said "You must be relieved that is all over."  I looked him in the eye and said to him "Your firm's gross incompetence and your lawyers have cost me a lot of money; I am rather upset; I suggest you go away very quickly."  His jaw dropped and he pulled in his hand very quickly, got up and scuttled out of the room.  I should add I am the size of an All Black lock so was twice his size.  I was rather proud I had not used any obscenities or hit him.

So, there you go.  As usual the legal system has been highjacked by the lawyers in favour of the deepest pockets rather than the victims.  My family and I were blameless here.  The building firm and the council were grossly incompetent.  Parts of our house were built in contravention of existing bylaws, parts would have collapsed within 2-3 years due to unseen beams rotting out and parts of the house were found to be dangerous.  We had to face the fact that 30 years of hard work and scrimping were now seriously at risk, we had to borrow and service a huge loan while not having a permanent job, move the family out for 6 months into a shit hole of a house (to keep costs down), face 2 years delays and loan costs, all while trying to save money for possible legal and court costs.

I am very angry and as the builder is part of a listed company I am thinking of buying some shares and start attending AGMs and asking questions that might attract the attention of the media.  I am reasonably handy with social media and that presents some opportunities as well.  My daughter said "Let it go as you'll just turn into a bitter old man."  She may be right.