Builder Mark Hewitt described her as obdurate, unreasonable and vindictive; Barbara Palmer described him as incompetent, unreliable and dishonest: the outcome of a Masterton home renovation that went seriously wrong. He was ordered to pay $67,500 to remediate cladding and roofing. A court order that his company pay $392,400 damages is likely to prove worthless.
The High Court was told Hewitt Building Ltd entered into a fixed price $526,300 contract in 2016 to renovate Ms Palmer’s recently purchased home on the outskirts of Masterton. Five year’s later, no code of compliance certificate has been issued, Masterton District has issued a notice to fix deficiencies and Ms Palmer has sued.
Hewitt Building Ltd did not defend. It was ordered to pay $392 400 damages for failure to complete the job according to contract specifications. Mr Hewitt told the court his company had no assets to meet any damages claim.
Ms Palmer also sued Mr Hewitt personally, alleging he was negligent in carrying out the work. Evidence was given of multiple cases of cost cutting by Mr Hewitt ranging from use of sub-standard materials through variations in the construction envelope by reducing floor areas, wall heights and width of eaves plus failures to carry out some of the contracted work; each having the effect of saving money on the fixed price contract. Mr Hewitt and Ms Palmer disagreed whether all variations had been approved. Ms Palmer paid Hewitt Building Ltd some $543,000; paying an extra $18,000 on the original fixed price for agreed variations. She later disputed performance of the building contract.
Mr Hewitt was not liable personally for breaches of contract by his company Hewitt Building Ltd, Justice Cooke said. Mr Hewitt was not a signatory to the building contract. But he was personally liable for workmanship failing to comply with the Building Code. Builders are personally liable for a failure to take reasonable care and in most cases that will be a failure to meet standards set by the Building Code, Justice Cooke ruled.
Mr Hewitt personally was ordered to pay $67,500 damages; the cost of ensuring items of cladding and roofing were fixed and made Code compliant.
Palmer v. Hewitt Building Ltd – High Court (18.06.21)
21.102