Invercargill City Council sued over Stadium Southland collapse

Insurance company NZI is sueing Invercargill City Council for $27 million over last year's roof collapse at the Stadium Southland indoor arena.

The roof of the $10 million stadium collapsed in a snowstorm on 18th September 2010, sparking a controversy over the quality of its initial design and remedial work done to fix problems.

In March, six months after the collapse, work started on construction of a new, stronger stadium, to be completed within a year.

The building site features a sponsored 'countdown clock', allowing the public to compare progress as time ticks down to its scheduled opening on 30th March 2012.

Invercargill Mayor Tim Shadbolt said he was shocked to hear the NZI was lodging a High Court claim against the Council.

Southland Indoor Leisure Centre Charitable Trust Chairman Acton Smith said the trust had lodged the insurance claim with NZI after the stadium collapsed under a heavy fall of snow in September.

NZI had accepted its claim within seven days.

Smith explained that the legal action the insurance company was taking against the city council had nothing to do with the trust, stating "our only business now is to rebuild the stadium," adding that it was "always a possibility" NZI would pursue the Council.

Smith continued "if insurance companies get a big claim and they believe someone is liable they always reserve the right to sue them."

The Council has committed $2 million in funding for the rebuilding of Stadium Southland, with the borrowed money to come out of the $3.6 million it had previously budgeted for the Southland Museum upgrade.

5th October 2010 - COUNCIL AND STADIUM TRUST TO WORK TOGETHER TO REBUILD STADIUM SOUTHLAND