Court of Appeal rules trailer home is a building

Is a trailer home a "building" for the purposes of the Building Act 2004?  That question has recently been answered by the Court of Appeal in Thames-Coromandel District Council v Te Puru Holiday Park Limited [2010] NZCA 633. 

The Thames-Coromandel District Council issued notices to fix to Te Puru Holiday Park Limited ("Te Puru") because it had installed Leisurebuilt trailer homes in its camping ground without first obtaining building consent.  Te Puru refused to comply with the notices to fix arguing that the Leisurebuilt units were not "buildings" under the Act, but rather "vehicles" which did not require building consent.  Te Puru and its director, Mr J were convicted and sentenced in the District Court for offences against section 168 of the Building Act because they failed to comply with the notices to fix.  Both Te Puru and Mr J appealed. 

The Court of Appeal explained the definition of "building" in section 8 of the Building Act 2004.  The council must first determine whether a structure is a vehicle or not.  If it is a vehicle, then the council must decide whether it is "immovable and occupied on a permanent or long term basis" in terms of section 8(1)(b)(iii) and if so, it is then deemed to be a building.  If it is not a vehicle, then the council must consider whether it is a structure as defined in section 8(1)(a) of the Act and if so, it is again deemed to be a building.

In this case, two types of trailer home were considered.  The "Duplex" structure consisted of two Leisurebuilt trailer homes joined together to form a single dwelling.  The other Leisurebuilt unit was a single unit called an "Ensuite".  Each unit was built on a galvanised steel trailer, which had wheels attached.

Leisurebuilt Duplex	Leisurebuilt Ensuite

The proven facts were:

• The units were constructed of normal housing materials and had the internal layout of a small holiday home
• The towbar for each unit had been removed
• The units sat on concrete blocks and timber packers
• The units had a ranch slider giving access to a removable wooden deck
• Slatted screens had been installed between the floor and ground level
• The units had no suspension or brakes
• The wheels were bolted to the hubs
• The units could not be towed without a special permit
• The units were plumbed and connected to power and water
• The units were immoveable for the time being.

The Court of Appeal adopted an "as is" categorisation.  In other words, the Court assessed the units as they presented, rather than what they might be turned into.

The Court of Appeal found that the proven facts were not indicative of a vehicle (something that moves) but indicative of a small house (somewhere to live).  Even though the Leisurebuilt unit could, with some modification, have been turned into a caravan or trailer, that was of minor relevance to its "as is" categorisation.  The Leisurebuilt units when considered "as is", were not vehicles in terms of section 8(1)(b)(iii) but were buildings under section 8(1)(a).  Accordingly, the trailer homes required building consent.  The Court of Appeal upheld the convictions and sentences imposed in the lower courts.  Te Puru and its director were each fined $10,000.

The Court of Appeal decision is important because there has been a proliferation of trailer homes in New Zealand as people look for affordable rental, holiday and retirement accommodation.  These homes raise safety concerns as, for example, they do not have proper foundations and are liable to float and create hazards in a flood.

This decision sets a precedent which is applicable to all structures on wheels which are used for the purposes of a building rather than as a vehicle.

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Last updated: January 2011

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