Insights & Articles

In business, contracts are the backbone of agreements, ensuring clarity and accountability. But what happens when a contract isn't written down? The case of Kingsbeer Transport Ltd v Martin Brower New Zealand sheds light on this question, revealing important insights for business owners.

This article explores a legal case heard by the New Zealand Court of Appeal, specifically regarding a dispute involving the supply of a building cladding product. The case involved two building owners who initiated legal proceedings against the German-based manufacturer and New Zealand-based distributors. The building owners alleged that the product was faulty and posed risks to their buildings, leading to potential loss and expense.

This article provides a practical example of the complexities involved in construction-related legal matters, such as payment disputes, contract interpretation, and the importance of adhering to legal requirements in construction contracts.

Selling a business requires owners and agents to highlight the appealing aspects of the business to attract potential buyers. Emphasising the positives is important, but when information veers into misleading territory, it can lead to significant issues.

As the world grapples with the aftermath of the COVID-19 pandemic, businesses face a myriad of legal challenges. From the financial strain on corporations to the nuances of insurance claims and employment law intricacies, the landscape is evolving. This article explores the potential areas of litigation that have emerged globally, shedding light on crucial aspects for businesses to consider.

In an age where time is of the essence and personal schedules are tightly packed, the reliability of transportation services is paramount. Late departures by trains, buses, flights, and other means of transportation have become a common concern for consumers around the world. The rights of consumers when faced with tardy departures are not to be taken lightly.

Woolley v Fonterra Co-Operative Group Ltd: The Exercise of Contractual Discretion‍On 29 June 2023, the New Zealand Court of Appeal delivered its judgment in the case of Woolley v Fonterra Co-Operative Group Ltd [2023] NZCA 266. In its judgment, the Court considered the approach to the exercise of contractual discretion in New Zealand, including the test adopted by the United Kingdom Supreme Court in Braganza v BP Shipping Ltd [2015] UKSC 17, [2015] 1 WLR 1661. A summary of the key facts of the matter and important points in the Court's decision follow.

As well as potential changes to the Holidays Act, see last year's article Changes on the way for the Holidays Act, there are potential changes on the horizon in relation to sexual harassment claims and restraint of trade provisions. We have outlined the details below.

Awards of costs in civil proceedings are at the court’s discretion. The general costs rule is simple: the unsuccessful party is required to pay costs to the successful party. The award of costs is normally made on a 'scale' basis – the scale comprising certain daily rates and certain time allocations for certain steps in a proceeding, both prescribed in schedules to the courts publishes rules of procedures. This, in practice, means that a party to a proceeding will always incur irrecoverable costs to some extent. Much less frequently, awards of costs are made on an indemnity basis, so the unsuccessful party must pay the actual legal costs incurred by the successful party.

If the purchaser discovers a defect with the property or breach of the sale and purchase agreement by the vendor just days before settlement is due, what can the purchaser and vendor do in that situation? Can the vendor force settlement? Should the purchaser be allowed to claim a reduction in the purchase price? The claim for compensation provisions were designed to achieve both objectives, requiring settlement to occur subject to some adjustment of the purchase price payable on settlement.

Many in the construction industry will be feeling frustrated at the latest lockdown slowing down projects and progress. Fortunately, not everything has to be put on pause. The Construction Contracts Act 2002 ("CCA") provides ways to recover money during lockdown.

The High Court has found that the Government's announcement of an Alert Level 4 'Lockdown' for four weeks from 26 March 2020 in response to the Covid-19 pandemic was unlawful and potentially unenforceable for the first nine days (Borrowdale v Director-General of Health [2020] NZHC 2090). The Court also reviewed the closure of all non-essential businesses, which is significant for business owners hoping to file civil liability claims for lost revenue during this period.

The Chief Justice of the Supreme Court, the Right Honourable Helen Winkelmann, has assured the legal profession and members of the public that the Courts will be operational during all Covid-19 alert levels, including lockdown during alert level 4: "Courts are an essential service. New Zealand courts must continue to uphold the rule of law and to ensure that fair trial rights, the right to natural justice and rights under the New Zealand Bill of Rights Act are upheld."

At one time or another, all businesses confront the unpleasant task of collecting outstanding fees for the services or products they have provided. When a client refuses to pay an outstanding invoice, recovering the money due may turn into a drawn-out process, even when the amount owed appears un-contentious. Engaging a solicitor to assist with the debt recovery process has the benefit of both impressing on the debtor your commitment to pursuing the debt and simplifying an otherwise frustrating process.

They say you shouldn’t break up with your boyfriend or girlfriend via text…but why not? In the case of Templeton UQ Limited v Watts & Hughes Limited, Templeton's application was served via email, a method not permitted under the Companies Act 1993. As a result, the application was struck out, demonstrating the critical importance of following prescribed service methods. These are both examples of when you fail to communicate appropriately, things don’t go well!