BUILDING work at a penthouse apartment in a luxury York flats development was "woefully inadequate", a court heard.

The High Court in Leeds heard how a York couple agreed to buy a top-selling flat at the £20 million Westgate apartments, and then pulled out of the deal following claims of a catalogue of faults.

Roger and Linda Bailey, of St Deny's Court, in York, are suing builder Taylor Woodrow for damages after their deal to buy a penthouse flat for £465,000 collapsed.

Bruce Walker, acting on behalf of the Baileys, said their claim against the builder was for breach of contract because the defendant had failed to finish building works in a reasonable time.

They also want damages for loss of use, cost of furniture storage, and loss of bargain - the amount the couple could theoretically have gained in profit if they had bought the apartment and sold it at a later date.

Taylor Woodrow has admitted liability, but was at court to argue the amount of damages it must pay. Court documents have previously shown that the Baileys' action was to seek more than £150,000.

The court heard that the Baileys reserved penthouse apartment 607 at Westgate in December 2001, and contracted to buy it on March 21, 2002.

Taylor Woodrow served notice that building works were complete at the development on November 7, 2002.

But a surveyor who looked at the apartment for the Baileys found "the building works were woefully inadequate", Mr Walker said.

The company withdrew its notice and did so again on other occasions before the Baileys rescinded their contract with the company in November 2003.

A court heard that a surveyor's report in March 2004 identified a number of problems including:

"water ingress" - leaks

construction that did not comply with building regulations

serious condensation problems

stone cladding which was "already becoming a serious problem"

"sub-standard" workmanship on the balconies

In November 2003, the Evening Press revealed how a number of penthouse owners were having problems with their dream homes a year after the building was opened.

Tom Grant, on behalf of Taylor Woodrow, said that Mr Bailey had bought and sold a number of city properties over the past few years, including two flats at Emperors Wharf.

The case continues.

Updated: 10:03 Tuesday, March 22, 2005