Transpower litigation

Photo credit: STUFF

A class action has been filed against Transpower and its maintenance contractor Omexom over a major power outage in June last year that left much of Northland without electricity for several days. The claim seeks compensation for losses suffered by affected Northland businesses.

The outage occurred after a transmission tower north of Auckland collapsed during routine maintenance when contractors removed the nuts from at least two tower legs at the same time, a practice outside standard procedures.

An independent Electricity Authority review found the collapse was “entirely avoidable,” citing inadequate procedures, poor training, and ignored internal warnings. About 180,000 residents and 20,000 businesses were affected.

The case is being run by Lee Salmon Long and Piper Alderman, funded by litigation funder Omni Bridgeway, on an opt-out basis at no cost to businesses. The lawyers say the $1 million contribution to a community resilience fund falls far short of actual losses. The case highlights the growing use of class actions in New Zealand, funded on a contingency basis where the funders receive a percentage of damages received by the litigants. The percentage would typically be between 20% and 40% of the settlement or judgment, but varies depending on the complexity of the case.

Further information

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