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10/13/13

Telecom dragged into leaky home scrap | Stuff.co.nz

Telecom dragged into leaky home scrap


BY JENNY KEOWN Last updated 10:38 09/10/2009

Telecom is involved in a legal fight over one of Auckland's largest rotting home disasters where it installed telephone junction boxes. It's three years since the owners of Ellerslie Oaks apartments on Cawley Street took action through the Weathertight Homes Resolution Service. The owner's original claim was for $4.3 million, but they amended this in July this year to $5.1m. Telecom is one of seventeen defendants in the legal battle. "We're just a deep pocket that they are trying to bring into the litigation,'' chairman Wayne Boyd told shareholders at Telecom's annual meeting last week. It is claimed that Telecom installed telephone boxes at the property development site through which water seeped in and caused damage to the apartments. Telecom's phone boxes are used to cover the point where its network connects with telephone wiring in the building. Telecom's group general counsel Tristan Gilbertson says owners are seeking ''damages in the sum considered equitable'' which requires the court to determine what, if any sum is just and reasonable in relation to the alleged fault. "We have always considered the claim against us to be opportunistic and without foundation, and this has been confirmed by external advice,'' he says. The owners of Ellerslie Oaks apartment have also taken action against the Building Industry Association and the Building Research Association which rubber-stamped products used in the construction of the rotting homes. The Weathertight Homes Resolution Service refused to comment about the case, but it has been reported that a Weathertight Homes Resolution Service assessor found numerous defects at Ellerslie Oaks. Meanwhile, Telecom last week said it had settled out of court with the liquidator of Korean phone-dating company Sintel, which was attempting to sue it for $61m. Sintel accused Telecom of failing to pass on payments from Korea Telecom for its service, which charged Koreans US$2 (NZ$2.72) a minute to hear recorded dating messages and visit a chat room. Sintel's liquidators were given court leave to overturn a settlement between Sintel and Telecom in 2000 and then claimed Telecom had misrepresented the debts leading up to the agreement. Telecom still faces a claim ofUS$17m plus unquantified damages from another adult phone service provider, Asia Pacific Telecommunications (APT), for alleged lack of fiduciary duty. APT is undertaking further inspection, so it can quantify the losses it says Telecom caused, and Telecom is reviewing its position in light of these developments. Telecom believes it has a strong defence for the majority of the claim, which is scheduled to be heard in
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10/13/13

Telecom dragged into leaky home scrap | Stuff.co.nz

June next year

- Fairfax NZ News

www.stuff.co.nz/business/industries/2948006/Telecom-dragged-into-leaky-home-scrap

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