Bay Harbour: January 25, 2017

Wednesday January 25 2017
BAY HARBOUR
PAGE 23
News
Steel mesh class action lawsuit looms
• By Tom Doudney
ABOUT 3000 Canterbury
homeowners have been sent letters
inviting them to join a class action
lawsuit against three companies
which allegedly supplied substandard
steel mesh.
Auckland firm Adina Thorn
Lawyers has proposed taking the
lawsuit against the companies
which are also set to be prosecuted
by the Commerce Commission
this year under the Fair
Trading Act.
The steel mesh, alleged to be
below the national building
standard, is typically used in
concrete slab foundations and
driveways.
The letter stated that if the
companies were found guilty in
the Commerce Commission’s
prosecution they would face
fines but this was “very unlikely”
to deliver financial compensation
to affected home owners.
“Unless the owners of affected
properties take legal action, they
will likely face losses in terms of
resale values, as well as possible
complications with insurance
claims in the event of an earthquake,”
it said.
The three companies were not
named by the Commerce Commission
but one, Steel & Tube,
chose to identify itself. Steel &
SAFETY ISSUE: About 3000 Canterbury homeowners have
received letters inviting them to take part in a class action
lawsuit over sub-standard steel mesh allegedly being used in
their homes.
Tube has said the commission’s
decision in relation to itself was
about the application of testing
methodologies and mistaken use
of a testing laboratories logo on
test certificates, not the performance
characteristics
of its seismic
mesh.
Adina Thorn
Lawyers senior
associate Richard
Hart (left) said
homes which received
the letters had been chosen
based on having had a building
consent issued during the four
years that the non-complying
mesh was being supplied. He
acknowledged the firm did not
know whether it had been used in
any of the specific homes it sent
letters to.
The 3000 was just a subset of
potentially affected homes with
the total number “too difficult to
obtain at this stage,” Mr Hart said.
“This is a potentially serious
problem, we don’t want to alarm
people but on the other hand
it’s an opportunity for people to
perhaps find out a bit more and
find out whether or not [joining
the lawsuit] is worthwhile.”
Letters had been sent to new
Auckland subdivisions as well but
Mr Hart said Canterbury had the
potential to be worse affected due
to the possibility of future seismic
activity in the region.
Steel & Tube communications
manager Tanya Katterns said
Adina Thorn had not provided
information to support its claims
that resale values and insurance
claims could be affected.
“We believe our seismic mesh
ensures building safety,” she said.
Last year Ministry of Business
Innovation and Employment
general manager building system
performance Derek Baxter said
he was not concerned that the
mesh posed a safety risk for
newly-built houses and was confident
they would still comply
with the Building Code.
The Structural Engineering
Society has also said homeowners
should not be unnecessarily
concerned about the steel mesh
in their houses.
The city council referred questions
from The Star to the Commerce
Commission. A spokeswoman
for the commission said
it did not wish to comment on
the class action.
DESIGNER
FASHION
AT OUTLET
PRICES
SMART
BRANDS
SMARTER
PRICES
HORNBY 409 Main South Road | Open 10am–5pm, 7 days