Topic: Pre-Settlement Inspection series 5 Reasonable Efforts

What constitutes “reasonable efforts” in practice?

Determining what constitutes “reasonable efforts” in the context of pre-settlement property repairs in New Zealand is fact-specific and depends heavily on the circumstances of each case. There’s no single definition, but several factors contribute to a court’s assessment:

1. Timeliness: Responding promptly to communications, providing timely updates on progress, and addressing issues without undue delay are key aspects of reasonable efforts. Unreasonable delays without justification will likely be viewed negatively.

2. Communication: Open and transparent communication is crucial. This includes promptly notifying the other party of any potential problems or delays, providing clear explanations, and actively seeking solutions collaboratively. Ignoring communications or providing misleading information would demonstrate a lack of reasonable effort.

3. Professionalism: Engaging qualified and reputable contractors, obtaining multiple quotes where appropriate, and ensuring repairs are carried out to a professional standard are all indicators of reasonable efforts. Using unqualified individuals or cutting corners would suggest a lack of reasonable effort.

4. Proactive Problem-Solving: Actively seeking solutions to address problems and overcome obstacles is essential. This might involve exploring alternative solutions, negotiating with contractors, or seeking expert advice to resolve unforeseen issues. Simply waiting for problems to resolve themselves without taking proactive steps would not be considered reasonable effort.

5. Mitigation of Losses: Taking steps to minimize potential losses or damages is a key aspect of reasonable efforts. For example, if a delay occurs, a party might seek alternative accommodation to avoid additional expenses. Failure to take reasonable steps to mitigate losses could be seen as a lack of reasonable effort.

6. Compliance with Legal and Contractual Obligations: Adhering to all relevant legal requirements and the terms of the contract is crucial. Failing to comply with these obligations without a valid justification would not be considered reasonable effort.

7. Objective Standard: The assessment of “reasonable efforts” is based on an objective standard. The court will consider what a reasonable person in the same circumstances would have done. Subjective beliefs or intentions are less relevant than the actual actions taken.

8. Context Matters: The specific circumstances of the case are crucial. Factors such as the complexity of the repairs, the availability of contractors, and unforeseen events will all be considered when assessing whether reasonable efforts were made. A delay caused by an unexpected natural disaster might be viewed differently than a delay caused by negligence or procrastination.

9. Evidence: Demonstrating reasonable efforts requires providing evidence of the steps taken. This might include emails, letters, invoices, contractor reports, and other documentation that shows proactive engagement and problem-solving.

In practice, demonstrating reasonable efforts involves a combination of prompt communication, proactive problem-solving, professional conduct, and a willingness to cooperate with the other party to achieve a timely resolution.

Failure to meet these criteria could lead a court to find that a party did not make reasonable efforts, potentially impacting the legal outcome of the dispute.