Earthquake: Limitation and Building Acts

The 2016 Kaikoura earthquake damaged the BNZ’s building on Waterloo Quay, Wellington so that it required demolition.  In August 2019 BNZ sued the Wellington City Council in negligence for losses of $101M caused by loss of the building.  The Council joined Beca Carter seeking contribution under the Law Reform Act 1936 and for negligence based on Beca’s role in design/construction of the building.  In Beca Carter v WCC [2022] NZCA 624 the Court of Appeal upheld the High Court decision that refused to strike out/summary judgment the claim against Beca Carter for limitation.  The Court of Appeal decided that the Council’s contribution claim against Beca Carter was not subject to the 10 year longstop in the Building Act 2004, but was governed by s34 Limitation Act 2010 that provided a 2 year limitation period post determination of the Council’s liability to BNZ which had not yet been determined.  The cause of action in contribution accrues on a finding of liability.  Separately the Court said that there was conduct of Beca Carter within 10 years of the negligence claim by the Council so the Court could not enter summary judgment.