Convictions, acquittals and questions of viability have been delivered by the presiding judge in Tauranga's failed Bella Vista Homes development.
Judge Paul Mabey this week released his findings from a five-week-trial into Bella Vista Homes Limited, which, along with its director Danny Cancian was convicted on three charges under the Building Act.
Two convictions, which carry a maximum penalty of a $200,000 fine, relate to two properties in the failed development which had improper wall heights, a lack of vertical reinforcing and the wall footing which was inadequate to hold soil loads.
The third, relates to another home where timber cladding was not installed or constructed in accordance with approved plans.
Both were acquitted on four charges.
The Bella Vista Homes debacle began after Bella Vista Homes went into liquidation in November 2017.
From there council inspectors found building defects and unsafe construction despite some being signed-off by council inspectors.
This resulted in a $14.2 million buyout of the homes by Tauranga City Council, as well as a raft of charges being laid against companies who carried out work on the development.
The Engineer Limited, along with its director Bruce Cameron, were each convicted on six charges relating to four properties.
Blocklayer Darrell Joseph was convicted on three charges relating to three properties.
In evidence, Joseph gave admissions his work fell below the standard of a Licenced Building Practitioner, and he exhibited a lack of attention to the plans, inappropriate applications of this trade and a lax attitude to compliance .
Given the public interest in the case, Mabey made some additional comments based on the evidence received and in his view the development was 'destined for failure from the outset”.
He questioned the logic of entering into house and land agreements which would require the homeowners to construct a large retaining, which separated the upper and lower houses on the site as 'remarkable”.
'The wisdom of purchasers entering into a contract which provides for the retaining walls as an extra is seriously open to question as is the advice, or lack of advice, they may have received before entering into such contracts,” he said.
Mabey said the development had significant liquidity and cash flow problems exacerbated by when Cancian purchased $1.3 million worth of shares in a director buyout even though the value of them was $400,000.
'It does not take much to appreciate the unorthodox approach to the subdivision… placed the Bella Vista subdivision on a path for inevitable failure.”
Mabey also made comments on Cancian's suggestion the council had interfered in his business, and he was personally targeted to put him out of business.
He said the council had acted 'fair and reasonable” and had 'succumbed to pressure to placate Cancian's demands”.
A sentencing date will be decided at a nominal hearing on January 22.
5 comments
TCC
Posted on 14-12-2020 11:17 | By Yadick
Surely Council Inspectors cannot walk away grinning and wiping their hands. They signed off on knowingly sub-standard, shoddy workmanship. I don't care how Cancians holier than thou attitude played out THEY SIGNED IT OFF. They have a major part to play in all this saga. Their workmanship was also substandard. There is a whole lot of blame to be taken on here and the courts have barely scratched the surface.
Questions
Posted on 14-12-2020 11:33 | By Kancho
Ok so a verdict of doomed to failure. So has there been a full investigation as to how TCC became embroiled in this failure. We're council staff charged? Where are the people responsible? So council had responsibility which cost 14 million and some was recovered by selling off the salvagable parts. What about legal costs incurred by council? What is the bottom line now, . ? Is this finally over ? Or more doomed to failure
Tom Ranger
Posted on 14-12-2020 13:41 | By Tom Ranger
Council has paid already for their part using the rate-payers cash moolah. Case closed for them. Previous house owners have signed waivers I bet. Safe to assume an absolute bargain for Classic Homes to pick them up for an undisclosed sum that rate-payers apparently have no right to know.
@ Tom Ranger
Posted on 14-12-2020 20:08 | By Yadick
Therefore TCC haven't payed - we have. TCC need to be held accountable for mismanagement of ratepayers money. Crikey, imagine the far reaching ramifications of that . . . Anyway, Merry Christmas Tom. Thank you for all your thought provoking contributions over this last year.
@Yadick
Posted on 17-12-2020 13:46 | By morepork
Are you serious?!! Hold the council responsible for "mismanagement of Ratepayers money"? Next thing you know, Councilors will be required to be respectful and comport themselves with the dignity due their office and the people they represent... What planet are you living on?
Leave a Comment
You must be logged in to make a comment.