It is a protracted legal game of cat and mouse. Christchurch property developer Wolfbrook Residential claims Christchurch City must cover losses on a planned multi-storey development after errors by Wolfbrook’s own consultants led to council approval of a non-compliant building consent. After losing a preliminary round in the High Court, Wolfbrook put into liquidation its subsidiary nominated for the projected build; by mistake, it says.
Associate Judge Lester ordered Wolfbrook pay $162,400 into court within three weeks to cover Christchurch City’s possible trial costs if it wants to proceed further.
This ruling negates Wolfbrook’s otherwise tactical advantage of pursuing litigation for its benefit in the name of a subsidiary, now in liquidation, whilst insulating itself from liability for costs if losing.
The High Court was told existing proposals for a sixty unit residential block on Lincoln Road in Christchurch were picked up by Wolfbrook subsidiary Complete Shelf Company No.8 Ltd in 2022.
Architects acting for Complete Shelf exchanged emails with Christchurch City over balcony design changes necessary to achieve building code compliance.
Six weeks after building consent was granted, Christchurch City realised required changes to Wolfbrook’s application had not been made.
Complete Shelf alleges negligence by Christchurch City, claiming council staff should have picked up the error.
Complete Shelf is claiming damages for what it says are increased costs: management time, further design work and holding costs for project delays.
In a May 2025 High Court fast track summary judgment ruling, Associate Judge Lester ruled there are too many unknowns. A full court hearing is needed to determine if there was any liability, and if so, how it should be spread between council, Complete Shelf and its consultants.
He questioned why Complete Shelf claimed this issue has put its whole project on hold.
Its code compliance dispute concerned balconies. That should not delay ground-level preliminary site works, he suggested.
Just over one year later, Christchurch Council was in court demanding Complete Shelf pay money into court as security should the dispute come to a full hearing and Complete Shelf lose.
Wolfbrook as shareholder put Complete Shelf into liquidation in early 2026, council told the court.
Council potentially faces substantial legal costs defending Complete Shelf’s claim, and Complete Shelf had no means to pay if it loses, council alleges.
Complete Shelf claimed it has a litigation funder willing to cover all legal costs.
Under questioning from Judge Lester, Complete Shelf eventually disclosed that its parent company Wolfbrook Residential is its litigation funder.
Judge Lester questioned the legality of such an arrangement; any damages recovered would be for the sole benefit of the supposed litigation funder: Wolfbrook.
He ruled Complete Shelf cannot progress its claim against Christchurch City unless it first pays into court council’s potential legal costs.
Council should not carry the risk of an unrecoverable costs award against a shell company when that company claims to have arranged financial support to pay, Judge Lester said.
Complete Shelf complained potential legal costs set at $162,400 is too high.
Judge Lester ruled Christchurch Council is entitled to take into account extra legal costs it may face given that Wolfbrook consultants involved in the building consent application are now involved in the litigation.
Complete Shelf Company No.8 Ltd v. Christchurch City Council – High Court (20.05.25 & 4.08.26)
26.218