Insights & Articles

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.

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.

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.

When was it over? When to call it quits? When did you say goodbye? Am I separated? What's in a date? In the midst of a relationship breakdown, when you and your former partner are separated is not often a front-of-mind question. However, your separation date can be important information in family law proceedings.

Entering into a relationship property contracting out agreement ("prenuptial agreement" or "premarital agreement") allows couples to determine together how they would like their separate and shared property divided if separation or death occurs.

The Employment Relations (Extended Time for Personal Grievance for Sexual Harassment) Amendment Bill ("the Bill") has now become law.

One of the considerations that employers need to make when undertaking a restructure and making roles redundant, is whether there are any redeployment opportunities for the impacted employees. See our previous article on restructures, which noted that, "During the consultation phase, you must consider and discuss with the employee whether there are any redeployment opportunities for them within the business, or if there are alternatives to redundancy, such as reducing hours or taking a period of leave".

Employers are generally prohibited by law from withholding an employee’s wages or salary, and other monetary entitlements due to the employee under legislation, with very few exceptions. The Government is now looking to criminalise intentional acts by employers of withholding such payments.

There have been numerous news articles recently about restructures, loss of jobs, and the impending gloom of 2023. If you are thinking about restructuring, you need to ensure the process is carried out correctly.

Minimum wage will increase by $1.50 per hour from 1 April 2023, and the median wage will increase to $29.66 per hour from 27 February 2023. The new median wage will apply to all Job Check and Accredited Employer Work Visa applications.

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.