Landlords owning an apartment contaminated by methamphetamine manufacture were awarded $299,000 for lost rentals and decontamination costs.
Grant Ian Sowman was held liable as tenant after police discovered a clandestine lab at a Point Ridge apartment in Albany on Auckland’s North Shore. Sowman pleaded guilty to criminal charges. His partner Adrienne Williams was also held liable for decontamination costs after admitting to using methamphetamine on the premises. Jokim Investments Ltd as owner of what was described as a two bedroom 64 square metre apartment originally finished to a high standard was left to clean up the mess. It took three and half years to remediate the property.
Sowman admitted liability, but disputed the cost. Justice Palmer said it was reasonable for Jokim to engage professional advisers and appoint a project manager to oversee the work. Private landlords do not have the expertise to co-ordinate difficult remediations. Damages of $260,000 were awarded for professional costs, inspections and remediation costs. A claim for lost rentals was reduced to $38,900. Taking three and half years to complete the project was too long; two years was reasonable. Some of the lost rentals was covered by insurance.
The High Court was told Jokim Investments has a freezing order over property owned by Sowman at O’Shea Road on Great Barrier Island.
The Point Ridge body corporate had limited insurance cover for methamphetamine contamination. As a general rule, tenants are excused liability where landlords have insurance cover for the loss suffered. But this exemption does not apply where tenants cause damage intentionally or cause criminal damage punishable by imprisonment.
Jokim Investments Ltd v. Sowman – High Court (25.07.18)
18.148