When Power Goes Wrong · Liability & Remedy Ledger · Part 11

Can councils and Crown entities be liable in their own right?

Yes. Councils and many Crown entities are statutory bodies corporate capable of holding rights and liabilities distinct from their members and employees. The correct defendant depends on the constituting statute and the cause of action.

Not every public-body claim belongs against the Attorney-General. Local authorities and statutory Crown entities can have separate legal personality and can be liable in their own names.

Local Government Act 2002 s 12 treats local authorities as bodies corporate with perpetual succession and broad legal capacity subject to statute and general law. Crown Entities Act 2004 similarly gives statutory entities legal capacity while separately protecting members, office holders and employees from liability in defined circumstances.

Entity liability and member liability are separate.A councillor, board member or employee is not personally liable merely because the public body is liable. Conversely, an entity can face negligence, judicial review or statutory claims even where the individual officer is immune.

Whangārei District Council v Daisley [2026] NZSC 72 is a current example of a local authority being sued directly for negligence and misfeasance arising from its own regulatory enforcement conduct.

Possible defendantsLocal authority, statutory entity, Crown entity company, Crown/Attorney-General, or individual official depending on the legal structure.

Key statutesLocal Government Act 2002; Crown Entities Act 2004; entity-specific legislation.

Member protectionCrown Entities Act ss 120–126 separate entity liability from personal liability.

Current case anchorDaisley confirms public-body negligence claims can be real, but remedy and limitation remain separate.

Before suing “the Government”, identify whether the actual legal actor is the Crown, a council, a statutory corporation or a separate Crown entity.

Primary statutesLocal Government Act 2002; Crown Entities Act 2004.

Supreme CourtWhangarei District Council v Daisley [2026] NZSC 72.

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