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Builder sues over house on wrong lot

Builder sues over house on wrong lot

A company that built a house to lock-up stage on the wrong block is suing the Water Corporation for damages, claiming it caused the mistake by connecting water to the incorrect lot.

Norvik Industries applied to have water connected to a block on Flagstaff Crescent in Secret Harbour in 2012 after entering into a building contract with Adrian and Linda Webb.

In a writ lodged in the District Court this week, the registered building company alleges the corporation connected water to the neighbouring lot by mistake.

The company then built the house on the block with the water connection, only realising the error when the home was almost at lock-up stage late last year.

Norvik Industries claims it "could not and would not have" built the house in the wrong place if the corporation had not make a mistake.

It is claiming damages, interest and costs from the State-owned utility but has not specified the amount sought.

The writ alleges the estimated cost to build the new house was $519,000.

It alleges the corporation owed Norvik Industries a duty of care to use skill, attention and due care to identify the correct location before making the connection.

"In breach of that duty, the defendant failed to ascertain the correct lot and instead connected water to a neighbouring lot," the writ says.

"In reliance upon the defendant's installation of the water connection, the plaintiff proceeded to construct the Webbs' house pursuant to the building contract on the lot to which the water had been connected."

The company also claims the Water Corporation's acceptance of its application for the water connection constituted a contract that required installation on the correct lot.

It alleges the utility breached that contract.

"It was also an express term of the contract that the purpose of connecting water to (the lot) was to enable the plaintiff to construct a new home upon that lot," the writ said.

It is not known what happened to the home when the company became aware of the mistake.

Norvik Industries and the Water Corporation would not comment while the matter was before the courts.