The High Court has recently stated that if a Purchaser does not purchase a LIM report the Purchaser is not able to rely on any inaccuracy in a LIM report obtained by another party such as a Vendor in respect to any negligence action against the Council.
Essentially the High Court has said that a Council does not owe a duty of care to the world at large to maintain its records or ensure that LIM’s are correct.
To establish liability from the Council in respect to incorrect information or an inaccurate LIM report the party relying upon it must purchase the LIM report itself.
There is some debate as to whether this decision is good law particularly as essentially the LIM report is only a collection of what information is available in the Councils records anyway. It is also noted in some instances Councils permit Purchasers to obtain the information directly rather than obtaining a LIM report if they attended the Council offices. Accordingly if the information on the records is incorrect the fact that it is incorporated into a LIM report purchased by another party should not determine the Councils liability if the information is inherently inaccurate.
However until a higher Court says otherwise Purchasers need to be aware that if they are relying on a LIM report that has been provided by a Vendor or land agent there will be no ability to take any action against the Council for inaccuracy in that LIM report.
If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:
Paul Farry
pfarry@farry.co.nz
09 379 0055 or 03 477 8870
The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.