Further delay for residents’ compensation

Press, 5 April 1980, Page 11

Further delay for residents’ compensation

PA Auckland Residents of Begbie Place. Mount Albert, whose home units are falling apart, face a further delay, in their fight for compensation. The Mount Albert City Council has decided to fight their compensation claim before the Privy Council in London, a move which could keep the case in doubt for at least another year. The Mayor of Mount Albert (Mr F. Ryan) says the council has to contest the claim because it will set a precedent for all other councils. Residents of the small Sandringham cul-de-sac blame the council for issuing building permits for their home units, built on a former rubbish site during the 19605. Shifting earthworks have caused splits in brick

walls, led to cracked paths and drives, and created holes in residents’ gardens. One resident has already won her test case against the developer, Sydney Construction, Ltd, and the council in which the Court of Appeal found the builder 80 per cent liable and the council 20 per cent Mount Albert ratepayers now face a compensation bill of $250,000 because the builder is out of business and other Begbie Place residents plan to claim damages. Mr Ryan said that the council will fight the case in conjunction with the Municipal Association’s insurance company. “We will also get clarification of whether the insurance would cover residents’ claims or whether . the ratepayers will have to foot the bill,” he said.