Statutory Liability Claim Examples

Please note that in addition to reparations or fines imposed is the legal costs of defence, which in some cases can exceed the reparations or fine.

Health & Safety
A seed processing company was fined for failing to take all practicable steps to ensure the safety of a maintenance worker, who was killed when he fell 6.5 meters through a skylight. Reparation - $60,000

Resource Management Act
An earthmoving contractor who constructed a groundwater retention pond was prosecuted and fined under the Resource Management Act for polluting, when the pond wall failed and sediment from the earthworks ran into a nearby stream.

Fair Trading Act
A clothing importer and retailer was prosecuted and fined $15,000 for failing to affix care and country of origin labelling to clothing sold in New Zealand.

Building Act
A property owner changed the use of his premises without obtaining proper consent. Although the building was situated in a commercial zone and was used partially for commercial purposes, the local authority discovered that part of the building was being let out for residential purposes. The property owner was prosecuted and fined for breaches of the Building Act.

Sale Of Liquor Act
A liquor storeowner sold wine to a young woman whom he thought to be over 18, however, he failed to ask for identification. It transpired that she was only 16 years of age and the owner was prosecuted and fined under the Sale of Liquor Act for breaching the terms of his licence, by selling liquor to minors.

Historic Places Trust Act
Whilst preparing a new property development, old bones were uncovered by a contractor. The contractor continued to work on the site and caused damage to the remains before the Historic Places Trust had an opportunity to assign the site status. The contractor was prosecuted and fined under the Historic Places Trust Act for knowingly damaging and destroying a burial area.

Medicine Act
A number of representations were made in the course of marketing a new pharmaceutical product, which, could not be substantiated. An investigation was undertaken and as a result fines were imposed under the Medicine Act.

Credit Contracts Act
A finance company pleaded guilty to 17 breaches of the Credit Contracts and Consumer Finance Act 2003, resulting from inadequate disclosure of the terms and conditions of its loans. The contracts were unenforceable because of the failure to properly disclose the terms and conditions. The finance company also pleaded guilty to further charges of breaching the act by telling the customers that the contracts were enforceable. The Court found that documents provided by the finance company had been faxed and photocopied, and in some cases were so distorted what they were impossible to read. The company was fined $60,000.