A recent decision of the High Court is a timely reminder to apartment owners that breaching contractual disclosure obligations in sale and purchase agreements can lead to serious legal consequences, including substantial damages.

The recent High Court decision in Taylor v Roper [2025] NZHC 30 clarifies the limits of exemplary damages in cases of vicarious liability. The court confirmed that such damages are meant to punish conscious wrongdoing e.g. deliberately running a known risk of causing harm to another, which is generally not the case with a defendant who is vicariously liable for the actions of another, third party (except in cases involving an unidentified wrongdoer—which did not apply in Taylor). While the court acknowledged the injustice faced by Ms. Taylor, it ultimately dismissed the claim for exemplary damages. Read more about the case and its implications below. #Litigation #ExemplaryDamages #VicariousLiability