Dayniel Ltd and Gary Todd Architecture Ltd (GTA) each admitted a charge of causing a modification to an archaeological site without authority, under the Heritage New Zealand Pouhere Taonga Act.
They were fined $16,250 and $13,000 respectively by Judge Brian Dwyer in the Dunedin District Court yesterday.
Charges against directors Tony Kok Tee Tan and Gary James Todd were withdrawn.
The legal proceedings were launched when the old Scribes bookshop in Great King St was bowled on April 7 last year.
The site was also known as the "Gibson property" after a successful butchery was established there and court documents detailed "a rich history of occupation and development dating back to the 1850s".
Because of the site’s age, the buildings were deemed an archaeological site under heritage legislation.
In 2020, Dayniel bought the site, planning to create another commercial premises, 10 accommodation units and parking, along with a rooftop garden.
It hired GTA, and the directors met the Dunedin City Council in September that year to discuss resource consent.
During that meeting, council officials advised any work would likely require archaeological authority, the court heard.
In March 2021, a resource consent for redevelopment was granted and in the documentation it was recommended the consent holder contact Heritage New Zealand Pouhere Taonga (HNZPT).
However, plans for the demolition of the building were afoot.
As traffic management and other safety measures were put in place, GTA sought advice about whether further archaeological consent was needed.
However, during those pivotal days, Mr Todd was bedridden with a serious illness and the demolition went ahead without the necessary authority.
Counsel for GTA Sarah McClean said, due to her client’s health woes, the information was not passed on at the critical time.
Judge Dwyer noted there was a substantial dispute between the defendants over where liability lay.
While that could not be resolved, it was appropriate GTA paid a greater fine because it had received written advice about its regulatory obligations and ought to have been abreast of them, he said.
"I do not consider that Dayniel could abdicate all responsibility to the architect without having made at least some check that everything was in order," he said.
The judge, though, accepted the failure by both companies was not deliberate, "rather ... the result of either confusion, misunderstanding, assumptions, or all three".
The court heard that the defendants had contributed $15,000 (two-thirds by GTA) to fund a University of Otago project creating an inventory of pre-1900 buildings in Dunedin.
Judge Dwyer said he hoped it would provide "a reference point for developers, building owners, local bodies and statutory authorities in avoiding this situation in future".
HNZPT manager archaeology Vanessa Tanner said as a result of the premature demolition any information that might have been obtained from the site was now lost.
"As you can see from the outcome of this case, it’s important that these requirements are taken seriously by owners and developers," she said.
Southern Heritage Trust chairwoman Jo Galer said she was happy the charges were accepted, "although the fines are a questionable deterrent for those with deep pockets".