Building products not subject to 10 year long-stop

Carter Holt Harvey (CHH) has continued its unfortunate run of losing every significant court case in recent time; the latest being a summary judgment decision from the Supreme Court in CHH v Minister of Education [2016] NZSC 95. [CHHvMOEOrs (1)]

The case related to defective building products produced by CHH (primarily Shadowclad) that have been used on school buildings throughout the country. As a result of the defects the Minster alleges the schools are not weathertight.

CHH sought summary judgment that the Minister has no claim against CHH. Summary judgement is a preliminary determination where the facts are taken to be true in order to determine whether the Minister may be a legal claim. As a result full argument was not heard on each issue and the judgment needs to be read in this light.

The Minister brought a number of claims against CHH, for the purposes of this post we focus on the two key likely to have a significant impact on the industry:

  1. Negligence
  2. Limitation under s 393 Building Act 2002

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