Local Authority Liability in Tort to Owners of Defective Buildings: The New Zealand Position

In New Zealand since the late 1970s, an action has been available against the local authority for any negligence on its part in the course of construction of a building. The duty of care is imposed on local authorities in respect of the issue of building consents, inspection during the course of the building's construction and the issue of any final certificate. The duty became known as the Hamlin principle, and was confirmed by the Privy Council in respect of a single residential dwelling. However, the building environment changed in the 1990s and this change led to a leaky home crisis affecting thousands of homes. It led inevitably to a challenge to the Hamlin principle. Recently, however, the Supreme Court confirmed the Hamlin principle in respect of both residential and commercial properties, whether single buildings or multi-unit properties. This article considers the evolution of local authority liability for the construction of buildings in New Zealand.