First round of Northland power pylon collapse case to begin in court

The first round of a class action lawsuit concerning a collapsed power pylon in Northland is set to commence in the High Court in Wellington on Thursday. The case involves claims against Transpower, the state-owned national grid operator, and Omexom, a French-owned maintenance contractor, following a pylon collapse in June 2024. The incident occurred when contractors simultaneously unbolted three of the four legs of the pylon, causing it to topple. This failure led to a widespread power outage affecting approximately 180,000 residents and 20,000 businesses in the region. In some instances, the blackout lasted for several days. Legal firms Lee Salmon Long and Piper Alderman initiated the class action on behalf of affected Northland businesses, offering a no-win, no-fee arrangement. The upcoming hearing aims to establish whether the case will proceed under an "opt-in" or "opt-out" model. An opt-out structure would mean all eligible businesses in Northland are automatically included in the proceedings, while an opt-in approach requires participants to actively enroll. Supporting the opt-out option are affidavits from iwi leaders Dame Naida Glavish and Harry Burkhardt, who highlighted the challenges faced by Māori-owned businesses in accessing legal recourse. Dame Naida Glavish noted that the pylon collapse occurred near her marae, Puatahi, north of Auckland. She emphasized that the incident was preventable and called for increased accountability in infrastructure management nationwide. "When infrastructure of this scale fails because of negligence, there must be consequences," she stated, stressing the importance of raising national standards to prevent similar occurrences. Harry Burkhardt pointed out that many Māori-operated businesses in Northland lack substantial financial resources, making it difficult for them to pursue legal action against larger entities like Transpower and Omexom. He argued that supporting the class action strengthens future standards for infrastructure reliability and investment in the region. "What happened here reflected complacency and a lack of care," he remarked, underscoring the need for deliberate investment in local communities and infrastructure. The iwi leaders' affidavit also stressed the logistical difficulties of informing Māori business owners in remote areas about the claim and the necessary steps to participate. They advocated for an opt-out framework to ensure broader access to justice, particularly in isolated regions. Meanwhile, the defendants sought an opt-in approach, which would require active participation from affected parties. Economic consultants Infometrics estimated the total losses to Northland businesses at $60 million, while the Northland Chamber of Commerce placed the figure at $80 million. The class action is funded by litigation financing firm Omni Bridgeway. Transpower has chosen not to comment, citing the ongoing legal proceedings. The outcome of this initial hearing could significantly impact the trajectory of the case and its potential to secure compensation for affected businesses. As the legal teams prepare for the court session, the focus remains on determining the procedural framework that will govern the class action’s progression.