Govt scores win for leaky schools

The Ministry of Education has won a court victory that will enable it to take legal action against Carter Holt Harvey over leaky school buildings.

The ministry started legal proceedings on behalf of schools against Carter Holt Harvey and others, alleging they supplied defective building products – particularly a type of cladding called Shadowclad.

‘‘Today’s judgment is a major victory for New Zealand taxpayers as it upholds the entirety of the ministry’s position and awards legal costs,’’ said Education Minister Hekia Parata.

‘‘This is the largest product liability claim ever made in New Zealand. Action was taken to protect the Crown’s significant investment in education infrastructure, and to promote better building practices in the future.

‘‘It’s vital we do everything we can to ensure children learn in modern, comfortable environments that inspire them to succeed.’’

She said remedying the situ- ation would be expected to cost more than $1.3 billion.

Associate Education Minister Nikki Kaye said the plan was to proceed to trial but the ministry was still open to discuss a settlement with Carter Holt Harvey.

‘‘The ministry has already repaired school buildings at greatest risk of weather tightness failure and is now targeting buildings of medium to low risk.

‘‘We are five years through a significant programme that has involved fixing huge numbers of schools.’’

The Ministry of Education is the first government agency to lodge a major product liability claim.

It has already reached successful, out-of-court agreements with manufacturer James Hardie, and CSR Building Products. But Carter Holt Harvey has fought to have most of the claim struck out.

It said the cladding was only one component of the buildings and no damage or injury had materialised.

But the High Court declined to strike out the ministry’s claim.

Then the Court of Appeal largely agreed and now, in a unanimous judgment, the Supreme Court dismissed Carter Holt’s appeal, and awarded costs of about $45,000 to the ministry.

This only clears the way for a compensation bid. That will require a new legal fight, unless settlement is reached.

But leaky-building specialist Dan Parker, from Parker & Associates, said it was positive for leakyhome owners.

‘‘This is good news for those pursuing claims against manufacturers and suppliers of allegedly defective cladding products and systems.’’