Litigation over defects at the Whakatane District Aquatic Centre is being settled out of court with an agreement to pay an undisclosed sum to the Whakatane District Council.

The content of the settlement is confidential and the decision to settle with the WDC was made, not based on any acceptance of liability by any party to the agreement, but rather on the basis of the irrecoverable costs that would be incurred if the matter had progressed to trial, says Mayor Tony Bonne.

The centre opened in late 2001 and operated under a partial code of compliance until 2010 when the council resolved to proceed with repairs and take action in the High Court against the building's architects, to recover the costs involved.

'In deciding to settle the matter now, the council had to take into account a number of matters.

'These included the likelihood of lengthy and costly legal proceedings; conflicting expert advice as to where responsibility for the building's defects lay; and uncertainty as to the amount which could be realised if the High Court judgement was in the council's favour.”

Tony says council faced the prospect that even with a positive High Court ruling, any sum awarded would be substantially consumed by the legal and expert advisory costs of both parties.

'Reaching a full and final settlement now ensures that there is a positive outcome for council and ratepayers.”