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.