Insights & Articles

Interesting insights on various areas of New Zealand law for individuals and businesses alike.
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Banks are tightening their lending requirements, prompting many buyers to explore alternative options like second-tier lending. Mezzanine.
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Second-Tier Lending: Understanding the Fine Print

In today's financial landscape, banks are tightening their lending requirements, prompting many buyers to explore alternative options like second-tier lending. Mezzanine financers and other last-resort money lenders can provide vital financial support, but it's crucial to approach these agreements with caution and a clear understanding of the fine print. After all, surprises are for birthdays, not loan agreements!
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Protecting assets has become important for modern relationships, with the growing importance of prenuptial agreements in safeguarding individual interests.
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The importance of Prenuptial Agreements has increased

Protecting assets has become an integral aspect of modern relationships, with the growing importance of prenuptial agreements for safeguarding individual interests. In June 2023, the New Zealand Supreme Court issued a significant ruling in the case of Sutton v Bell, which centered on Sections 44 and 26 of the Property (Relationships) Act 1976 ("PRA"). This decision marks a pivotal shift in the interpretation of key legal provisions governing property rights in relationships.
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If you're in the process of purchasing a property in Auckland, it's crucial to be aware of the potential limitations that may come with an agent-provided LIM.
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Buyer Beware: The Limitations of Agent-Provided LIMs

Obtaining a LIM is a crucial step for prospective property buyers, but with the cost of a LIM being around $400 and with many real estate agents offering LIMs at no cost, it can be tempting to rely on their convenient provision. However, it's crucial to be aware of the potential limitations that may come with an agent-provided LIM.
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Identify key changes, review your society's rules, draft a new constitution, advice on re-registration, or organisational structure - we offer guidance.
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Incorporated societies: Key changes and compliance

With approximately 24,000 incorporated societies in New Zealand, ranging from substantial business-like entities to modest sporting clubs, the Incorporated Societies Act 2022 ("New Act") influence is far-reaching. Regardless of size, all incorporated societies will be affected, so it is crucial to understand and prepare for the implications of the New Act to avoid potential consequences for non-compliance.
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This article discusses the upcoming New Zealand General Election and highlights the political parties' campaign promises.
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The Impact of the Upcoming Election on Employment Law in New Zealand

We are fast approaching New Zealand's General Election, and the nation's political parties have hit the campaign trail with their visions for the country. Changes are expected not only in the political sphere but also in employment and workplace relations. This article discusses the political parties' campaign promises and provides an overview of some of the parties' plans for the future, with a note that the list is not exhaustive
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Succession, once a straightforward process, is now akin to navigating a minefield. The need for careful consideration and expert advice has never been greater.
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Family Business & Succession Wars!

Succession, once a straightforward process, is now akin to navigating a minefield. With children seeking to cash in on their beneficial interests or shareholdings to fuel their own ventures, the need for careful consideration and expert advice has never been greater.
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The significance of insurance in the context of purchasing a home cannot be overstated. Our property lawyers are well-equipped to assist you.
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Insurance when buying a home

The significance of insurance in the context of purchasing a home cannot be overstated. It is not only a critical component but also a mandatory one when seeking financial assistance from lenders for a home purchase. Lenders need proof of adequate and appropriate insurance coverage before approving a loan drawdown.
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Proposed Changes to KiwiSaver Contributions: What Employers Need to Know
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Proposed Changes to KiwiSaver Contributions: What Employers Need to Know

Is your company deducting the Employer KiwiSaver contribution from your employees' pay? A new Bill, introduced to Parliament on 8 June 2023, aims to revolutionize the employer's role in KiwiSaver contributions.
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Woolley v Fonterra Co-Operative Group Ltd: The Exercise of Contractual Discretion. On 29 June 2023, the New Zealand Court of Appeal delivered its judgment.
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The Exercise of Contractual Discretion

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.
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The death of a spouse or partner is an emotional and challenging time for the one left behind. Handling the Deceased's estate can be an overwhelming task.
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How may relationship property be divided when a spouse or partner dies?

The death of a spouse or partner is an emotional and challenging time for the one left behind. Often left with the overwhelming task of handling the Deceased's estate, the surviving spouse or partner will be unaware of their entitlement under the Property (Relationships) Act 1976 (the "PRA"). Many will opt to taking under the Will, not knowing they also have the alternative option of applying under the PRA for a division of relationship property.
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Testamentary capacity is the legal term used to describe a person's mental and legal capability to create or alter a Will. Many factors may affect this...
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Testamentary Capacity

When constructing a Will a will-maker has the freedom to decide how they wish to distribute their property upon their death, this is known as testamentary freedom. However, this freedom is not absolute. In certain circumstances, such as when a will-maker is said to have lacked capacity when they last made or altered their Will, a Will can be challenged and possibly be declared as invalid.
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Mediating Trust Disputes. Mediation is an alternative solution for settling trust disputes and may be a more advantageous option for parties.
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Mediating Trust Disputes

Countless families across New Zealand place their most valuable assets, such as their property, into a discretionary family trust. However, when a couple separate and each party is a trustee to the same family trust, conflict and disagreement will often arise as to the management and enjoyment of trust assets. Disagreements on internal trust matters have the possibility of turning into time-consuming, expensive and public proceedings in court. Mediation is an alternative solution for settling trust disputes and may be a more advantageous option for parties.
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Can you Require or Encourage an Employee to take the Covid-19 Vaccine?

Can you Require or Encourage an Employee to take the Covid-19 Vaccine?

Written by:
Melissa Johnston
Recently there have been a number of announcements by large employers overseas making the Covid-19 vaccine mandatory for customers and or employees. However, in New Zealand the Ministry of Health has confirmed that it will not be making the Covid-19 vaccination mandatory for New Zealanders. Given the current climate, employers in New Zealand are considering their options, including whether to make the vaccination mandatory in the workplace or even if they can encourage their employees to have the vaccine.
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Amendments to the Residential Tenancies Act 1986

Amendments to the Residential Tenancies Act 1986

Written by:
Alissa Bell
Vast changes to the Residential Tenancies Act, what landlords need to know of their rights and obligations to tenants. With the increasing number of New Zealanders renting, Parliament has seen it fit to make changes to the Residential Tenancies Act 1986 ("the Act") to ensure renters are occupying warm, dry and liveable properties. The reformed Act looks to strike a balance between providing security and stability to tenants, while protecting landlord interest. It is important that landlords have an understanding of the new obligations and responsibilities the amended legislation imposes upon them, along with the penalties they may incur if not followed.
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Casual or Fixed Term?

Casual or Fixed Term?

Written by:
Melissa Johnston
2020 has been a year of upheaval for employers. Now many employers are looking for different ways to employ staff where their requirements have changed.
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High Court Finds Level 4 'Lockdown' Unlawful for First Nine Days, Considers Lawfulness of Non-Essential Business Closures

High Court Finds Level 4 'Lockdown' Unlawful for First Nine Days, Considers Lawfulness of Non-Essential Business Closures

Written by:
James Turner
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.
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Implications for Incentive Payments/Bonuses

Implications for Incentive Payments/Bonuses

Written by:
Melissa Johnston
The Employment Court decision has significant implications for employers in respect of target-based incentive payments, and holiday pay entitlements over annual closedown periods. The Labour Inspectorate and Metropolitan Glass jointly filed proceedings in the Employment Court as they were unable to agree on holiday pay calculations (Metropolitan Glass and Glazing Limited v Labour Inspector, Ministry of Business, Innovation and Employment [2020] NZEmpC 39).
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Is Your Overseas 'Pre-Nup' Valid in New Zealand?

Is Your Overseas 'Pre-Nup' Valid in New Zealand?

Written by:
Alissa Bell
If you or someone you know has signed a Prenuptial Agreement, Premarital Agreement, Antenuptial Contract or Contracting Out Agreement in a country outside of New Zealand, then you/ they should find out if and how that Agreement applies in New Zealand. Irrespective of where these types of documents are signed, they generally have a similar purpose; that being to determine the status, ownership and value of assets at the start and end of a couple's relationship. But, are they valid when you have moved away from the country of signing?
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Workplace Personal Grievance Options Expanded Under New Law - Employment Relations (Triangular Employment) Amendment Act 2019

Workplace Personal Grievance Options Expanded Under New Law - Employment Relations (Triangular Employment) Amendment Act 2019

Written by:
Melissa Johnston
On 27 June 2020 the Employment Relations (Triangular Employment) Amendment Act 2019 ("the Act") came into force. The Act aims to provide protection to those in triangular employment relationships. Typically, a triangular relationship exists where a person is employed by a labour hire company/recruitment agency, and works under the control and direction of another entity (a controlling third party).
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What is the Difference Between Assignment and Novation?

What is the Difference Between Assignment and Novation?

Written by:
Andrew Knight
Assignment of contracts is a fairly common practice in the business world. In an assignment, the person assigning the contract - the "Assignor" - assigns the benefits of the contract the Assignor holds to a new person (the "Assignee") who takes the benefit of that contract "the Assignee". Some contracts may expressly prohibit assignment and some contracts provide that a contract may not be assigned without the consent of the other party. If a contract has no provision relating to assignment, then the general rule is that it may be assigned, with a few exceptions.
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Navigating New Zealand's New Privacy Arena

Navigating New Zealand's New Privacy Arena

Written by:
Andrew Knight
In a world that is placing an increasing reliance on technology and value in data, it is hardly surprising that New Zealand's outdated Privacy Act 1993 ("Act") is scheduled to be replaced on 1 December 2020 in its entirety by the Privacy Bill ("Bill") which is currently making its way through the final stages of Parliament.
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Business Debt Hibernation - or Buying Time to Calm the Wolves at the Door

Business Debt Hibernation - or Buying Time to Calm the Wolves at the Door

Written by:
Craig Andrews
Introduction - This article highlights an important but little-noticed piece of New Zealand legislation hurriedly prepared and enacted in response to the Covid-19 pandemic. The Business Debt Hibernation scheme was created to help companies, partnerships, trusts, or incorporated societies established before 3 April 2020 to cope with and manage certain existing debts where those entities are unable to immediately pay those debts due to the impact of Covid-19, but where their prospects of payment in the future are much better.
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