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An elderly couple from Christchurch won a three-year court battle against their insurer, IAG, and the builders who have been found responsible for repairing their earthquake-damaged home.
Alan Sleight, 87, and Joan Sleight, 81, took IAG, project managers Hawkins Management Limited and builders Farrell Residential Limited, to court after the insurance giant refused to accept responsibility for the repairs. defective and deficiencies in the scope of work performed by the builders. .
The couple said they felt “insensitive” after the Christchurch Superior Court issued the reserved judgment on Friday, finding all defendants liable for $ 389,848 that are costs to repair the earthquake-damaged home in Christchurch. Per the standard “when new” policy.
IAG described Sleight’s case as a “test case,” being the first to determine whether the insurer was responsible for defective work performed by builders under its managed repair scheme.
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The house the Sleights lived in for nearly 50 years was hit by the earthquake on September 4, 2010, but the most severe damage occurred in the February 2011 earthquake.
The Earthquake Commission assessed the home as over the ceiling (the damage would cost more than $ 115,000 to repair) and Sleights’ insurer, IAG, decided the home was cheaper to repair than to rebuild.
IAG’s comprehensive home insurance policy referred to a standard of reinstalling the couple’s damaged home to “a condition as similar as possible to when it was new.”
The problems began six months after repair work began in February 2014.
Since the brick cladding needs to be replaced and a new foundation is required, the $ 319,000 job should have been completed in about six months
The Sleights’ son-in-law Nigel Maxey, who assisted the couple, said that when it became apparent the project was significantly behind schedule, he got involved to keep things moving, but found there were also problems with the quality of work.
Iain McGregor / Stuff
Alan Sleight feels “numb” after winning a three-year battle against IAG, the insurance company responsible for repairs to his earthquake-damaged home.
“As we became increasingly concerned about the quality of the work, we had to hire independent experts to verify the work that Farrells had done. It became clear that there were significant problems with the repairs, which the parties involved were unwilling or unable to resolve, ”Maxey said.
Most of the flaws came down to the way the builders had laid the Linea boards and the tightness of the windows.
Some on the ground level had been changed to accommodate the alignment of the second floor siding and ground level. It meant that the windows did not have approved flashing and therefore could not be guaranteed by James Hardie. Many other problems were minor and cosmetic, but they soon added.
The Sleights terminated their contract in 2015 and returned to IAG, which told them their contract was the responsibility of Farrell, not the insurer, Maxey said.
They felt that since IAG had chosen the builders and supervisors through its managed repair scheme, it should have taken care of the defects that its experts say will cost $ 360,000 to repair once ancillary expenses are accounted for. .
However, IAG insisted that it was not responsible, as the construction contract was between Sleights and Farrell. However, he commissioned his own report that confirmed most of the flaws found by Sleights experts.
Iain McGregor / Stuff
The Sleights’ home before the earthquake repairs.
Maxey said it was clear that IAG and its project manager, Hawkins, had drafted the contract to exclude both of them from any liability.
“It has been a long and grueling process, but the court ruled that the defendants were liable because the repair work did not meet the standard of the policy and violated the Consumer Guarantees Act.”
Maxey said the victory was a relief, but that he would not regain the years and health the couple had lost.
“Alan and Joan should have been in control of their own lives, making decisions about how to live their twilight years. Instead, they have had a terrible sailing nightmare for the past six years, ”said Maxey.
“It has been an incredible stress for the whole family.”
IAG and Hawkins have been contacted for comment.
