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Apartment owners in a luxury hotel complex have lost their battle to sue the old North Shore City Council.

The Court of Appeal has upheld an appeal by the council which means the owners of three apartments in the 23-storey Spencer on Byron Hotel in Takapuna cannot sue the now-defunct North Shore City Council for negligence after the hotel became a leaky building.

Repairs, which have yet to be done, could cost $20 million.

The apartments are considered a minority residential use in a largely commercial development, and the courts had earlier determined the council owed a duty of care to residential owners but not to commercial building owners. 

The Spencer on Byron was said to be suffering from widespread defects in the roof, roof edge, decks, balustrades, cladding and joinery.

Source: NZ Herald

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