Canterbury tales Canterbury tales Canterbury Westland Branch New Zealand Law Society October 2013, Vol. 19, No. 9 Two new QCs admitted By Malcolm Wallace The third president of the USA, Thomas Jefferson, principal author of The Declaration of Independence, spokesman for democracy and the rights of Man, diplomat, polymath and university founder once said: For heaven’s sake discard the monstrous wig which makes the English judges look like rats peeping through bunches of oakum. The donning of wigs (by those who could lay their hands on one) to attend the ceremonial admission to the Inner Bar of our own Philip Hall and Jonathan Eaton on 19 August 2013 exemplified the origins of this 400-year-old preferment. Their admission was presided over by the Rt. Hon. Dame Sian Elias Chief Justice, together with Hon. Justice William Young, and Hon. Justices Panckhurst, Kos and Gendall and Associate Judge Matthews. (See photograph Page 11). This year’s appointment round of Queen’s Counsel was the first since 2007 following changes to the Lawyers and Conveyancers Act earlier this year restoring the title of Queen’s Counsel and restricting appointments to barristers sole. In June 2009, Attorney- General Hon Christopher Finlayson announced that the title of Queen’s Counsel would be reinstated, and a bill to implement the restoration was introduced into Parliament in March 2010. The bill could not be said to have been passed with any haste, receiving the Royal Assent on 19 November 2012. Indeed there were some who expected the next round to be King’s Counsel. There was a time when limits were placed on Queen’s Counsel, to preserve some work for members of the outer bar (such as the writer). Queen’s Counsel and serjeants were prohibited, at least from the mid-nineteenth century, from drafting pleadings alone; a junior Above, new QCs, Pip Hall and Jonathan Eaton and, right, being congratulated by brother silks. barrister had to be retained. They were not permitted to appear in court without a junior barrister, and they had to have chambers in London, a requirement perhaps easier than having chambers in post-quake Christchurch. From the beginning, they were not allowed to appear against the Crown without a special license, but this was generally given as a formality. These restrictions made the taking of “silk” something of a professional risk, because the appointment abolished at a stroke some of the staple work of the junior barrister; they made the use of leading counsel more expensive, and therefore ensured that they were retained only in more important cases, and they protected the work of the junior bar. It is unlikely that either of Pip or Jonathan would have needed Silk to claim the attention of the Court of Elizabeth I in Westminster Hall. But as Dame Sian Elias told us: It is what is made of the patent that counts. A former Chief Justice once said that the place at the Inner Bar is reserved for those who are upright, learned and brave. Queen’s Counsel are expected to justify their appointments by demonstrating those qualities in all their work. We are confident that those admitted today will repay this trust, to the benefit of the New Zealand legal system. Her Honour recognised in her address that both Pip and Jonathan have displayed the independence, hard work and technical skills worthy of the call to Inner Bar. Likewise their preparedness to take on the difficult and unpopular cases that win counsel little praise outside of the profession. Their ability and independence is illustrated by them both being regularly appointed to represent members of the Police facing disciplinary or criminal prosecution. One notable omission from Her Honour’s address was that Jonathan worked for Wood Marshall while Pip was a partner of that firm. Perhaps that would generate a good question for Judge Neave at a future quiz evening. It was delightful to see the pride and joy on the faces of the family and friends of Pip and Jonathan sitting in the jury box during the ceremony. No doubt none of them will pass the scrutiny of any future jury selection. Dame Sian Elias also took the opportunity to praise the Christchurch profession as a whole that, she said, demonstrated the finest standards of the profession in helping those in need of help in the terrible circumstances we have all faced since the earthquakes. The great ceremony drew to a close and all over town wigs were carefully stored or relegated to their dusty drawer. They will come out again though, most likely at another type of ceremony, one to welcome the newest members of our profession. Yes, Mr Jefferson, as practitioners are admitted, advance, are elevated, and ultimately retire to the eternal chamber, those “monstrous wigs” link every practitioner to the origins of our great legal tradition. 22 Canterbury Canterburytales tales Vino Fino Photo Caption Each month we have a photo caption competition where we invite you to submit a caption. The winner will receive two bottles of wine sponsored by Vino Fino. Send your entry to the Canterbury Westland Branch New Zealand Law Society, P.O. Box 565, Christchurch. All entries must be received by November 9 2013. The winner will be announced in the next edition of Canterbury Tales. The winning entry for last month’s picture (below) was submitted by Roger Sandford.. “Don’t worry girls, they are repealing Section 108 Employment Relations Act.” President’s Column I have just returned from a weeklong hearing in the High Court in Wellington. So, while I normally use this column to tell the profession about developments happening locally or nationally which may affect them, today my head is still so immersed in my case that my colum¡n will be a self-indulgent reflection on that experience. As any lawyer who has been involved in a witness action of any duration will know, it is a gruelling exercise. For some time leading up to it, and certainly every day of the case, it dominates your thinking to the exclusion of everything else. In reflecting on it during an unscheduled hiatus between the conclusion of evidence on Friday and the presentation of closing submissions, caused by gale force winds in Wellington, the following questions come to mind: * Why is that no matter how much work you do on a case beforehand, you only really realise what the case is all about on the third day of hearing? * Why is that your best ideas for crossexamination strike you at 2am in the morning when you either have to get up to write them down, or risk losing them before daybreak? * Why is that the judge always has at least one thought on the case that had never occurred to you? * Why is that when your shakiest witnesses hold up brilliantly, the most innocuous seeming ones turn out to have the potential to derail your case? As litigators will know, there is almost no experience quite like the total immersion you experience during a hearing. Your existence shrinks to a world populated by the judge, Court staff, opposing counsel, and the regular attendees from each party involved. For a brief portion in your life you create your own world of in-jokes and black humour to defuse the tension of what otherwise is at stake between the parties. Having parties and counsel who retain that clear divide between the arguments in the case, and the professional courtesy and camaraderie beyond (as I have had in this case), makes it all bearable. And of course, at the end, like any contest, there is the relief that it is over, the satisfaction of reflecting on what was done well, and the niggling regrets over what could have been done better. However, unlike a normal contest, the victor is not announced on the day. I know that by the time the judgment comes, my world will have moved on. I will be immersed in other files and thinking of other issues. Win or lose, it will be a distraction by that stage to return to it, for the client’s sake. If it is a win, I will, of course, be happy to take the credit. If it is a loss, no doubt the client and I will find some reason, beyond our control, for the judgment being so aberrant. In the meantime, while I await that outcome, instead of the rest I was dreaming of, I will be catching up on all the work I put on hold for the past two weeks....! Rachel Dunningham Canterbury tales 3 Lawyers and their Super By Rohan Wills When I was in Auckland for a yachting contest in the 1970s I noticed a beautiful large launch with the name “Risk and Reward”. It was owned by a well-known Auckland professional with family money. I had a long chat to him regarding the name and he told me unapologetically how it had happened. It was at that point I recalled the Parable of the Talents, Matthew 25:14:30, which was regularly read at our School Assembly. For those who don’t possess a Bible you can Google it! It is self-explanatory but the message in a nutshell is use what you have and capitalise on your strengths to increase your wellbeing. Lawyers are professionals who by definition are well educated, enjoy considerable work autonomy and are commonly engaged in intellectually challenging work. It seems however that whilst good lawyers can give excellent results to clients they seem to do so at the expense of themselves. What I mean by that is that it is assumed by clients that with the fees charged there is more than enough disposable income to create a substantial retirement fund for the practitioner. In reality this is far from the case. By the time the house in Riccarton is paid off and the children have been educated there is little capital left to retire on. Kiwisaver is a start in the right direction but most financial planners agree that you need at least $1000 per week Canterbury Tales is the official newsletter of the Canterbury Westland Branch New Zealand Law Society. Publications Committee: Karen Feltham (editor), Brendan Callaghan, Aliza Eveleigh, Zylpha Kovacs and Kate Dougherty. All correspondence and photographs should be forwarded to: The Branch Manager, Canterbury-Westland Branch New Zealand Law Society, Unit 1, 8 Homersham Place, Russley, Christchurch. P. O. Box 565 Christchurch. Phone 358-3147, fax 358-3148. email [email protected]. Canterbury Tales is published 11 times per year. The deadline for editorial and photographs is the 8th of the month. Disclaimer: Canterbury Tales is published by the Canterbury Westland Branch New Zealand Law Society. The opinions expressed herein may not necessarily be those of the Branch and have not been expressly authorised. The Branch accepts no responsibility whatsoever for any error, omission or statement. disposable income additional to Kiwisaver to maintain a reasonable retirement lifestyle. The Government realised this many years ago for the Judiciary with the generous retirement superannuation they receive which compensates them for earning less than the equivalent person in the private sector. The many and various retirement business’s run by prominent barristers have featured all too often in the Courts for various reasons. So unless you are a high profile QC or apply to become a judge, what are your options to generate additional income to support your retirement goals? Prior to law firms being able to incorporate, it was up to individual partners to do what they wish outside the partnership. This caused a lot of friction between partners and affected workflow and profitability. There were also different degrees of risk depending upon the personalities of the different partners. With the right to incorporate there is no reason a firm cannot capitalise its goodwill, bring in work in progress and debtors and end up with a strong balance sheet which would allow some leverage to do other things that generate income and capital. Historically some of the large legal firms with advice from their accountants entered into dicey deals with filmmakers and forests to produce tax losses. These were a disaster as everybody was out of their depth with no knowledge of what they were investing in and no skill to run them or exit from them. There was to be tax losses and large capital gain. Too good to be true. No wonder they were all struck down by the Commissioner. Now that the tax rates are the lowest in years it is important to generate income and some capital growth outside the firm to provide for retirement options for the directors. So what about the Risk and Reward? Lawyers, are by definition, adverse to risk but there are investments which can be made which are calculated and whilst carry some risk do carry some reward. Let me give you some examples which are quite recent. Prior to the earthquakes a firm was looking at purchasing its own premises as its rent roll was going to increase. A suitable building was found and purchased using the strength of the firm’s balance sheet and showing the previous rent was more that the present mortgage. After moving, the earthquake happened and betterment from the repair was that of the firm and not the landlord. It now has equity in the building of over a million dollars after the upgrade (they were insurance savvy) and their rent/mortgage is substantially less than their previous rent. Another example is a firm asked my advice on what to do with the excess from its reduced rent commitment as a result of moving to smaller, less suitable premises as a result of the earthquake. I suggested they purchase five houses (there were five directors) as there was going to be a housing shortage and it would be a good shortterm medium for investment. It took some persuading but I said they all knew real estate and should be comfortable about buying and managing such property. They are now in the position that the rent from the properties is reducing debt weekly and each property has increased in value by over $100,000. They are over half a million better off and their office rent is more than being covered by the rents received. I have other examples but time is too short. I would be happy to talk to firms for no charge over morning tea to see how you can get ahead using existing assets to help fund retirement as I can assure you that if you are in a position to retire early then there is a life after law and it is pretty dam good. I can be contacted by email, [email protected]. 24 Canterbury Canterburytales tales Untied from the Timesheet No.2 Challenges within law firms By Andrew Nuttall Partner, Bradley Nuttall Ltd Last month I wrote about the research I had undertaken during the year in interviewing a number of practitioners, partners and others who work closely with the legal fraternity.l I spoke about the challenges of attraction and retention of talent, the ageing population, the pending retirement of many baby boomer lawyers and the feminisation of the legal fraternity. This week I am going to discuss additional challenges mentioned during my interviews. Succession A large proportion of Christchurch’s Law Partners are males aged 50 and above. No doubt a number will be planning to retire over the next 5-10 years, which will provide opportunities for younger, motivated practitioners. While there is a need for good succession planning, a number of my respondents indicated that a smooth succession could be stymied by senior partners being overly protective of their client bases. Lawyers have been trained to be very good lawyers and take a real pride in providing good legal advice but there can be a tendency to retain control and not delegate effectively and pass work on. More than one senior partner emphasised that it was so very important to plan ahead twothree years to ensure a smooth and successful transition and work with the client and the younger lawyer to maintain relationships. Firm valuations A number of Christchurch law firms are more than 100 years old which is no doubt the result of effective planning, hard work, good advice and maintenance of client relationships and trust. Retaining and building expertise within the firm is on going and requires constant attention. One of the most frequently mentioned challenges centred around the firm’s equity. Debate focuses on what contributions new partners are expected to make and what payouts do retiring partners fairly deserve. There are a number of different valuation models within Christchurch and firms seem to be “tight lipped” about how they confront and solve succession-planning issues. Some firms have a policy of ‘no money in, no money out’ while others expect and require more substantial contributions of equity from partners. For those partnerships requiring a contribution of capital a “lockstep” process is frequently used. Is there room for partners and managers within Christchurch and New Zealand to share ideas more openly to address this major challenge? One firm reported seeking advice from off shore consultants. Client expectations Most respondents reported that today’s clients had greater expectations than previously and expect more, sooner. Lawyers felt they are now “subject to greater scrutiny by even long term clients”. While relationships are important and will always be a key factor in law, an increased tendency for the most valuable clients to shop around was reported. The shopping around was not necessarily price sensitive but clients were more motivated to ensure they had the best person to advise them and help them solve their problems. Some respondents suggested that this demand for expertise is driving merger and acquisition activity and the growth of larger firms. One respondent said, “law firms are just like successful cricket teams that require specialists with one or two all-rounders.” The was a general consensus that firms with a large proportion of ‘all-rounders’ or ‘generalists’ are under pressure compared with other firms and practitioners who have established specific areas of expertise and niches. Technology New technology developments and enhancements will enable law firms to continue to grow and prosper, however, resources need to be committed to this area. This can be a challenge as many practitioners aged more than 45 years are not necessarily strong in technology. Respondents indicated that in recent years some firms have invested heavily in systems and technology and the benefits of this is now apparent. However, more will be required in the future. Databases need to be constantly groomed and upgrades to Trust Account Management software and communication technology is on going. Technology has created a greater emphasis on nationwide interaction and enabled lawyers to work remotely but at the same time has made it easier for competitors to enter the Canterbury market. High stress levels A number of respondents indicated there were frequently high levels of stress within law firms. “It’s a competitive environment with capable, experienced and highly trained people but high performance environments can also take their toll,” said one. There is a constant need to bill as well as find new clients and manage the firm. Younger partners can be saddled with the pressures of debts and the need to “keep up with the Jones’s.” In addition highly motivated people are inclined to impose high expectations on themselves as well as others close to them, which can add pressure, stress and anxiety. There is a need to ensure stress levels are managed both at a personal level and as an organisation to ensure the firm is an employer of choice and the environment enables all stake holders to meet personal, professional and financial goals. Even though there is stress one partner stated that the “legal profession” is a great cash model and although costs, including leases, have increased law firm costs still represent a relatively low percentage of turnover when compared to other businesses. He went on to say that there is now a greater need for lawyers to think like other businesses. This is easier said than done as law firms are dominated, as they should be, by practitioners whose main driver will be to ensure they are good lawyers in the first instance and provide high quality, professional advice. They are relationship people but successful businesses also require excellent management and some entrepreneurial flair. Michael Gerber’s book, The ‘E-myth Revisited’ emphasises that every business requires three personalities to be successful — the technician, (i.e. the practitioner), the manager and the entrepreneur. Many of the firms who reported improved profitability and office collegiality have allocated time, energy and resources to business planning and management. A number have employed professional managers and sought external advice from HR and technology consultants as well as engaging experienced managers and directors. I hope this article will be helpful and stimulate discussion and planning. Please note that the above is not necessarily my opinion but is a collation of views expressed by a number of people I have interviewed. Next month I will discuss the financial challenges that practitioners are facing. Canterbury tales 5 Making a difference Dr Chris Gallavin On taking up the position of Dean and Head of Law at Canterbury in 2012 it was my desire to change the face of legal education in New Zealand. There have been many innovations in education and the law and an exponential rise in need within society and the legal profession that have all gone unaddressed by New Zealand’s universities. Focusing on the legal profession in particular, this inability to adapt the education of law students has, I believe, resulted in the graduation of students who are not as well equipped to face the practice of law as those in other countries. Looking more broadly, the inability to adapt also has an effect upon civil society and the quality of the contribution our graduates can make to the big issues faced by our communities, our country and our world. Big problems require big thinking and big thinking does not occur by accident or as a result of narrow education. So, whilst parts of the world have moved with the times, developments in legal education along with developments in the law and our communities have largely passed us by. The New Zealand law schools in particular have simply not kept pace with many of these developments nor stayed attuned to the changing terrain. We have, to a large extent, remained flat footed as the world has changed around us. I most certainly do not advocate throwing everything out and starting again. Canterbury in particular is known for its fundamental grounding in the core aspects of legal analysis and we have no intention of changing that. However, for our graduates to cope in a more nuanced and complex world they must be equipped with the skills and attributes most suited to the challenges they will likely face. That not only applies to the law and the legal profession, but is also applicable to our graduates as global citizens irrespective of their chosen profession[s]. Whilst the need for change has been more or less recognised for quite some time the motivation to develop has been lacking. Well, not in post-quake Canterbury. In 2010 the world changed for our community and the status quo was largely wiped away over a rocky 12-month period. What followed for the School of Law, as with most of our community, was a period of introspection in which we examined who we were, what we stood for, and how we went about our business of research and teaching. Dr Chris Gallavin and his preferred mode of transport. Although we would not want to relive anything like the troubles we faced over that time, in hindsight the opportunity to reinvent ourselves was hugely invigorating. Inspired by the lead of our students — those law students who established the Student Volunteer Army — we recognised that our community could not afford for us to be the aloof ivory tower that we had become. When I refer to ‘our community’ I not only mean the legal profession but also civil society. We also recognised that the issues faced by the Canterbury region in particular were and would continue to be the most challenging but most exciting that any society in New Zealand, if not the developed world, could possibly face. Calls upon the School of Law for help and assistance started to flood in — Phillipstown School, EQC issues, calls for greater collaboration with Community Law, and Urban Maori development with the placing of a District Court on the Marae at Aranui were all issues that needed the enthusiasm, intelligence and dedication of our students — students keen to make a difference, keen to be a part of something bigger than themselves. With all this before us we began to look at ways in which we could integrate practical projects into the training of lawyers. At a function for Community Law Canterbury hosted by the School of Law the Vice Chancellor presented me with a simple but very difficult question to answer; “Why is the notion of community law not integrated into the training of lawyers the way community health is integrated into the training of Doctors?” — “Yes” I thought, “why not indeed”. And so at Canterbury we have launched the first clinical legal programme in New Zealand where students will be expected to complement their dedicated book learning with getting their hands dirty with real issues involving real people. Continued Page 11 26 Canterbury Canterburytales tales ‘The Kilichallenge’ By Serina Bailey In his book “The Snows of Kilimanjaro”, Ernest Hemingway described the mountain as “wide as all the world, great, high and unbelievably white in the sun”. Hemingway might be mortified to know that since 1912 the Kilimanjaro glaciers have lost 85% of their ice due to the warming of the Indian Ocean and the deforestation of the lower slopes. Apparently the ice will continue to melt over the next 30 years so, if you want to view what’s left of these stunning glaciers, now is the time to go. As the biggest freestanding mountain in the world, sitting in its unique position on the equator, it richly deserves its other name - the Roof of Africa. None of these thoughts were running through my head as we, myself and Alex Millen, neared the summit in pitch blackness, the temperature having plummeted to almost -20 degrees, barely able to breath at almost 6000 metres, head aching. It was exceptionally uncomfortable and unpleasant and, at that moment, it seemed a stupid thing to do especially as it was an expensive and time-consuming exercise. Reaching that point started several months earlier when Alex casually mentioned she was going to London via Africa to climb the mountain and to also check out the Serengeti wildlife and dazzling beaches of Zanzibar. After a minute or 2 thinking about this, I was in - our adventure was born. The structure of Mt Kilimanjaro makes it possible to trek to the summit without technical climbing experience and therefore is a manageable challenge to the likes of Alex and myself who are neither mountain climbers nor used to altitude. Even so, at 5895 metres it is a serious undertaking with the freezing temperatures and altitude difficulties taking their toll. Many do not make the summit and every year there are deaths on the mountain. The official statistics reveal that only 41% of climbers reach the Uhuru Summit, the majority turning around during the final ascent, sometimes within a few hundred metres of the top. Further, the incidence of Acute Mountain Sickness is widely deemed to be unacceptably high. We thought it was cold when we left Christchurch one chilly July afternoon, having no appreciation how bitterly frozen we would feel a few days later when we finally reached the top of the mountain. Fortunately we had filled our packs with enough top quality Kathmandu gear so the cold, at least, was manageable. We also intended to take our training seriously enough that we would refrain from drinking alcohol during the 38 hour long haul trip ahead of us to reach the African town of Moshi — our kick off point for the mountain. That intention lasted for the first hour of the first flight and by the time we reached Dubai, many hours later, it seemed appropriate to have G & T’s for breakfast. Tonic, apparently, is a good mosquito repellent and although we were still a long way from Moshi it seemed to us a good idea to help the body prepare for those pesky creatures. Our last flight from Nairobi to the Mt Kilimanjaro airport (Tanzania) was short but spectacular. Within a half hour of take off from Nairobi we felt the tangible excitement of seeing the mountain for the first time as our aircraft seemed to fly within touching point of the very glaciers we would soon be walking beside. It looked so big! A late check in to our Moshi Hotel did not allow us to see anything of the town as we drove through the dark. The pot holed, uneven, dirt roads reminded us of Christchurch and we assured our driver we did not mind being bounced around. We had an opportunity the following day to visit Moshi Town with an enthusiastic young African named Moses who was keen to show us all the sights including the town’s water source, the fruit and vegetable markets, the bus station (in case we needed to go somewhere), the Masai medicinal stalls, the railway lines going nowhere, the schools, the motor bike wash shops, the orphanage and, importantly, the best place to get coffee (Coffee Union for those who know Moshi). It was an entertaining and interesting day. I was fascinated that the big name player in the town is Coca Cola — this company sponsors everything from the schools to the post offices, from local businesses to the Sikh Club. The distinctive red signage appears everywhere. When our booking was made in Christchurch we understood we would be trekking with a Serina and Alex Millen, with their guides, express their joy at reaching the top of Mt Kilimanjaro. Canterbury tales 7 The morning sun on one of the glaciers at the top of the mountain. wonderful array of food in the candle lit mess The crew which trekked up the mountain. Serina and Alex are at either end. tent. Alex and I would look at each other over small group of climbers, possibly up to 10 the final ascent to the summit. the very solid, chunky candles and think how people. Our guides, of course, were the decision makers romantic it all was — if only it wasn’t each other When we had our “group” meeting the day and determined what time we left, when we we were looking at! after our arrival, we were told we were the only stopped for breaks and whether we went for a The food was exceptional. Every day we were two in this particular group. Initially we felt further acclimatisation walk after reaching our presented with fresh soups (our favourite was socially deprived but, ultimately, it turned out camp for the night (this happens as one gets fresh, hot cucumber soup, a taste sensation), to be an exceptional experience for us - we further up and breathing becomes noticeably fruit, sandwiches — the porters carried loaves were spoilt for attention. We had a guide, an more difficult). of bread tied to the outside of their loads so as assistant guide, a cook, a “waiter” (more about Even so, at this point I must put in a special not to squash the bread) — chicken, vegetables, Frankie later — every girl should have one!) word for Frankie. His smiling face would be avocados, pop corn and chocolate biscuits. and as many porters as necessary to carry tents, the first thing we saw at 6am every morning Frankie would sometimes appear with a small cooking gear, chairs, food and water. after we struggled out of our sleeping bags (the bowl of hot water — this was the only washing Alex and I felt we could have been setting off nights are cold, long and uncomfortable), water available for six days and by the end of to make a famous discovery with our attentive unzipped the tent flap and there he was — day one, everything was infused with dust. and dedicated crew. holding a flask of hot water with our mugs and Within minutes of washing your hands, they The mountain lies in the heart of the Kilimanjaro all the necessary instant packets to make that were dirty again as everything you touched was National Park. Most trips to the summit and essential first cup of coffee. We simply did not so dusty — tents, packs, jackets, boots. back take five or six days. All trekking must be function until we poured caffeine down our We spent many hours talking to our guides as done with a licensed guide with their teams of throats. we trekked forever upwards towards the porters and there are several different routes A half hour later his gentle voice would tell us summit. Every topic from education to job up the mountain. breakfast was ready and the mess tent was set opportunities, from crime to corruption, from We chose a lesser used route on the northern for two with an array of food to energise us for agriculture to industry, from family life to religion side of the mountain near the Kenyan border the coming day. was discussed. Continued Page 10 as we did not want to use the more popular Every night Frankie waited on us with another “coca cola” routes with the larger numbers of trekkers and busier camps. We left our Moshi hotel in a mini van with all our crew on board. The trip to the start of our trek took most of the morning with a stop at Marangu Village to complete the paper work. While waiting here our guides took us to a local eating spot to enjoy greasy goat broth with cooked bananas — a “treat” which Alex and I declined but we did drink the milk tea (mostly milk) as it seemed a little early to ask for a beer. As we continued winding our way northwards, around the base of the national park, we passed through many villages with their many vegetable and goat markets, a funeral procession with a brass band playing from the back of a couple of moving utes (indicating someone important), oxen pulling laden carts and grubby children playing on the edges of the dirt roads, amusing themselves with anything to be found. Starting in the Rongai pine forest we steadily made our way up to our first camp, pleased at last to be making a start. During the next three days we quickly fell into a routine that was only to vary on our fourth day immediately before 28 Canterbury Canterburytales tales Nominee company lending Times they are a changing By Philip Strang Readers of The Press may have noted the article (A13 2nd October) titled ‘Get creative to beat the rules’. The article discussed “10 creative strategies for thumbing your nose at the Reserve bank’s new LVR rules and getting your foot on the property ladder”. Of interest to the writer (and perhaps Canterbury Tales readers) is the 7th ‘creative strategy “Call your Lawyer”. While the Society would always advocate the seeking of advice that strategy cites the writer Olly Newland’s suggestion to seek funding through Lawyers’ Nominee companies. There are, however, some practical difficulties with this strategy; the foremost being that if a loan application cannot meet the Reserve bank’s 80% LVR it will surely fail the Nominee company’s 67% requirements; i.e., the two thirds ‘rule’ of 67%. The Law Society wrote to all law firms that are active in lending activities on 14 May and 12 July this year regarding the transitioning of Lawyers lending from the purview of the Society to the Financial Markets Conduct legislation and the FMA. Such transitioning is to occur by 30th September 2016. It is reasonable to project that compliance costs for law firms engaging in lending activities may rise in the new regime. I say this as currently there are no additional external compliance costs if a law firm wishes to engage in lending, nor cost savings should they cease. It is my personal view that few firms will transition their lending to the new regime and most firms will operate a ‘sinking lid’ policy i.e., not renew existing loans as they expire. It is also my personal view that there are two distinct ‘camps’ of Lawyers’ lending — those who are diligent and well organised and those who are not. Those of the latter camp should be aware that non-compliance with Nominee Company rules results in a steady stream of referrals to the Standards Committees. Unless a firm has made a considered and researched decision to continue lending beyond 2016; and is committing resources to such, it would be unlikely that they should avail a borrower of strategy #7. Canterbury tales Case summaries (67) Terranova Homes and Care Ltd v Faitala — [2013] NZCA 435 — Randerson, Harrison & Miller JJ — 19 September 2013. EMPLOYMENT LAW - MINIMUM WAGE — EMPLOYER KIWISAVER CONTRIBUTIONS Unsuccessful appeal from Employment Court (EC) decision - full bench of the EC had held that employer was not entitled to deduct compulsory employer contributions payable under KiwiSaver scheme from wage of employee paid at rate of statutory minimum wage - cross appeal by respondents relating to construction of a provision in the employees’ contracts - principal appeal concerned relationship between s6 Minimum Wage Act 1983 (the Act) and s101B Kiwisaver Act 2006 - appellant employed respondent employees as caregivers at rest home in Wellington employment relationship was governed by individual employment agreement - gross wage was $13.50 per hour - employees were members of KiwiSaver scheme - agreement provided that employees’ remuneration was inclusive of any KiwiSaver compulsory employer contributions which appellant deducted from gross wage before tax - employees had issued a proceeding against Terranova before the Employment Relations Authority (Authority) in which they claimed arrears of wages represented by Terranova’s deduction of its statutory contribution from their wages Authority removed the proceeding to EC for determination - EC held appellant in breach of s6 of the Act and that respondents were being paid at rate less than statutorily prescribed minimum wage - in particular EC found: - (i) purpose of the Act was to ensure that workers received base wage for their work to enable them to meet daily living expenses for themselves and their family - minimum wage did not have built in component of saving for retirement; - (ii) allowable deductions from wages such as liable parent contributions and PAYE represented obligations owed by employee personally - in contrast payment of compulsory employer contribution under the Kiwisaver Act 2006 was employer’s not employee’s contribution and did not constitute payment by employer for work performed by employee for purposes of the Act; - (iii) s101B of the Kiwisaver Act 2006 was subject to s6 of the Act - where employee paid the minimum wage, employer was obliged to pay the 2% contribution in addition to minimum wage or (if the parties agreed) the gross wage must amount to the minimum wage plus 2% appeal on grounds that EC erred in: (a) concluding that compulsory employer contributions were not wages received by employees for their work within meaning of s6; (b) in rejecting appellant’s argument that s6 could not limit Parliament’s authority to enact later contrary legislation (s101B); - (c) relevant provisions of both Acts when read together entitled appellant to make deductions - HELD: (1) EC decision upheld: - EC did not err in concluding that compulsory employer contributions were not wages received by employees for work within meaning of s6 payment of contribution was not “payments for his [or her] work” but payment of employer’s obligation as required by law - money paid did not belong to employee but to KiwiSaver scheme and employee’s rights ultimately depended on terms and conditions of governing instrument - relationship between hours worked and amount of employer’s contribution was a means of quantifying employer’s obligation and did not satisfy separate concept of payment for work; doctrine 9 New Zealand’s legal research tool of implied repeal did not apply given provisions able to be read consistently on basis that s101B was subject to provisions of the Act applicable to minimum waged workers; s6 and s101B read together did not authorise deductions from wages - introductory words of s6 prohibited employment agreements affecting substance of workers entitlement to prescribed minimum wage - s6 of central importance in setting minimum statutory threshold consistent with New Zealand’s international obligations that purpose of minimum wage legislation was that minimum wages should not be subject to abatement by individual agreement; - (2) as Terranova’s appeal dismissed it was unnecessary to determine respondents’ crossappeal - appeals dismissed - interests of justice served if Terranova ordered to pay 75 per cent of costs for a standard appeal on a band A basis and usual disbursements. Comings & Goings Joined firm/organisation Moved Rebecca Ardagh (Lane Neave), Jeremy BellConnell (Wynn Williams Lawyers), Gregory Belton-Brown (Lane Neave), Miriam Black (Papprills), Monique Bond (IC Frith & Associates), Jennifer Carr (Duncan Cotterill), Malaika Cockerell (Duncan Cotterill), Colenna Collins (Saunders & Co), Adam Cox (Chapman Tripp), Hamish Davies (Corcoran French), Catrina Hunter (Weston Ward & Lascelles), Joanna Ling (Cherry Kannangara Thomson), Catherine McCallum (Goodman Tavendale Reid), Jonathan Nicolle (Anderson Lloyd), Wathsala Ponnamperuma (Cherry Kannangara Thomson), Katherine Rouch (Chapman Tripp), Andrew Sclater (Saunders Robinson Brown), Ann Skelton (Markit Law), Kimberlee Smith (Cavell Leitch), Tanya Speight (Wynn Williams Lawyers), Dhamendra Unka (Taylor Shaw), Kelsey Watson (Connors Legal), Penelope Wells (Anthony Harper), Andreea Wilson (Insolvency Management). John Goddard (Anthony Harper to Canterbury Community Law), Alanya Limmer (Solid Energy NZ Ltd to Lane Neave), Richard McLoughlin (Trustee Executors Ltd to Anchorage Trustee Services Limited), Sarah Manning (Simpson Grierson to Cavell Leitch), Andrew Orme (The Property Group Limited to Anderson Lloyd), Catherine Schache (Duncan Cotterill to ARANZ Geo Limited). Change of details Macalister Todd Phillips, Lyttelton Branch, 50 London Street, Lyttelton. Adrienne Edwards Barrister, 92 Fernside Road, RD 1 Kaiapoi 7691. Charlene Benson, 8 Shepherd Avenue, West Melton, Christchurch 7618. Commerce Commission, PO Box 9237 Tower Junction, Christchurch 8149. Young Hunter, Level 2, Young Hunter House, 134 Victoria Street, Christchurch 8013. 2 10 Canterbury Canterburytales tales ‘The Kilichallenge’ Continued from Page 7 The days were sunny and clear, the nights long and cold. We trekked through the different zones and found that our breathing and sleeping had become affected from about 4000 metres. On reaching base camp Kibo (almost 5000 metres), the final camp before the final ascent, we noticed real difficulty in exerting ourselves. We arrived here early afternoon and the first thing we saw were two women being almost dragged off the mountain between guides — seriously affected by their final ascent. One was later taken by stretcher from the camp unable to stand. A sobering sight. However, it was exciting being at base camp as we tried to rest for the night-time ascent to come. At 10pm we were given hot tea and biscuits (a final supper perhaps!) before leaving camp at 11pm. We walked by the light of our headlamps as we zigzagged our way up the scree slopes. It felt bitterly cold but the temperature was to plummet many degrees more by 3am. Despite the many layers of good thermals, jackets, gloves and hats the cold still seemed to seep into our wary bones. We saw several climbers heading back down the mountain before reaching half way, obviously unprepared for the bitter cold. Half way up, our heads started to ache. Our noses ran and the snot froze on our face. Our guides ask us not to take any pain relief — they wanted to know how we were coping, unmedicated, with the altitude. We passed a Japanese woman, on her knees vomiting. I asked Alex where did this crazy idea come from? Our pace was so slow I believed it would take a week to get there. I played mindless counting games in my head to pass the time and overcome the slow motion like feeling of the climb. We stopped for a drink of honey sweetened tea somewhere up the mountain and it seemed so difficult to work out how to hold the cup. The scree slopes become rocky, with goodsized boulders to scramble over. I could not look up — the headlamps shining in front of us seemed so far away. I lost all sense of time and was amazed when we suddenly reached Gillmans Point from where the climb tracks around the edge of the volcanic crater. We were now at 5695 metres — only 200 metres higher to reach the ultimate point. We felt incredibly emotional. We cried. We were going to get there, a significant achievement for both of us. It was still pitch black and very cold but within an hour the sky began to lighten and we felt the excitement of the pending sunrise. By now we had reached Stella Point and waited here to take photos of the beautiful sunrise as the ice reflected the golden yellow and orange hues of the sun casting its spectacular light onto the impressive glaciers. We felt overwhelmed. It was stunning. Within another half hour we reached the final point — Uhuru, the top of the mountain at 5895 metres. We were standing on the Roof of Africa. All the difficulties of the preceding 8 hours or so escaped us and we continued to take far too many photos (camera batteries having been kept close to our hearts to keep from freezing). Other people grabbed our cameras so we could have photos taken together and with our guides. Everyone was in amazing spirits but within a very short time we had to start the descent. We retraced our steps to Stella and Gillman Points, scrambled over the large boulders and reached the scree slopes once more. It looked a long way down to base camp and suddenly we felt very tired. The thought of zigzagging back down the long slopes didn’t appeal — scree surfing seemed a much better option. This saved time but raised a dust storm and by the time we reached the camp, dust had permeated every pore. We were beyond filthy! At base camp we were allowed two hours to Base Camp Kibo..........from where Serina’s group started its final ascent. rest before setting off to lower slopes. Our exhilaration competed with tiredness but we readily trekked back to lower levels and easier breathing. We stopped at 3700 metres, which seemed relatively normal. To say we slept well that night would be an understatement. It was the first night on the mountain I didn’t feel cold or uncomfortable. I just slept. The following day was our walk out of the national park. The scree slopes had transformed from scrub to bush to lush, green, monkey filled forests. It seemed the monkeys lay in wait for the trekkers and laughed at us as we walked by. Back in Moshi by late afternoon we had two things on our minds — a cold beer and a hot shower. The beer was easy. We sat in our hotel courtyard and ordered. The Kilimanjaro brew slid down our dust lined throats feeling sensational. We then raced up to our room to be first in the shower but.....no hot water! We were leaving for Arusha the next morning (the first step on our way to the Serengetti) so needed to get ourselves and some of our clothes clean. It was a matter of grin and bear it as the cold, blackened water swirled down the plughole. Our guides returned to pick us up much later in the evening to take us into Moshi to celebrate. It turned into an eventful evening with colourful negotiations over alcohol bills and taxi fares. It ended when I was offered what I thought was a drink of cognac but turned out to be Konyaki — the local fire water, a truly gut burning experience! It was well into the early hours now and as much as I hate to admit it, age is definitely creeping up and the thought of a comfortable bed for the first time in a week was too much. Alex decided she wasn’t hanging out in Moshi on her own, especially as we had an early start next morning for the next stage of our travels so, after another taxi fare stoush, we were back at our hotel tucked up between clean sheets dreaming of leopards, cougars, wilderbeast and pink flamingos. Another story! Canterbury tales Canterbury Westland Branch/NZLS Education Programme Proudly sponsored by Honourable lineup. The Chief Justice Dame Sian Elias is flanked by Associate Judge Matthews, Justices Kos and William Young and, on her left, Justices Panckhurst and Gendall at the admission ceremony for new Christchurch QCs Pip Hall and Jonathan Eaton. Making a difference Continued from Page 5 This, we believe, will set students up with skills fundamentally required but never held important by this or other universities in New Zealand. Let me be clear — we at Canterbury are not here to turn law students into bleeding heart liberals. Neither are we are here to instil a philanthropic sense of service for the sake of service into students. But we are also not here to be a degree factory. We are here to make a difference and that includes our students as much as members of the Faculty. Employers and the world at large need graduates who are able to deal with all manner of issues in a nuanced and sophisticated way through the application of a variety of skills that illustrate an ability to think and act clearly, logically and professionally. Come 2015 all law students at Canterbury University will have to accrue 100 hours of community and/or professional service (paid or unpaid) over the life of their degree. Practice Notice In addition to this requirement students will undertake courses on such things as curriculum vitae development, professional liaison, interview skills and working within a professional environment. Further, all law students will have to undertake one of three internships — either the Legal Internship, the Community Law Internship or an internship with the New Zealand Public Interest Project. The Community Law Internship and the New Zealand Public Interest Project Internship will both be launched in February 2014 (watch this space). The Legal Internship has just been launched and will, this summer, already be the single largest internship programme at the University of Canterbury if not the largest across all the universities in New Zealand. We are also very pleased to announce the advertisement of a new key strategic position the Director of Clinical Legal Studies. The advertisement for the position can be found on the UC vacancies page at: http:// www.canterbury.ac.nz/joinus/. This person will be not only charged with Directing the Clinical Programme but will lead research on the justice gap in New Zealand and will also seek to develop a much closer relationship with the Canterbury legal profession. We are greatly looking forward to working more closely with the Canterbury legal profession and the wider Canterbury community. We are committed to making a difference and providing an opportunity for our students to change the world and to stand out from the crowd as multi-skilled leaders as a result. The innovations detailed here can be further viewed in our strategic plan which is available on our website — http://www.laws.canterbury.ac.nz/. NZLS Continuing Legal Education (CLE Limited) To register and for other information check the CLE website, www.lawyerseducation.co.nz Christchurch November 5 — Update on Contract. 12 — The Role of the Trustee (also Webinar, 20 November). 20-21 — Reading accounts and balance sheets. 26 November — Webinar, The Retirement Village option, advising your clients on the benefits and pitfalls. 26 — Immigration and Protection Tribunal. 27 — Trust Account Supervisor Training. Out of Christchurch Lawyer as Negotiator, Wellington, 12-13 November, Auckland, 19-20 November. Introduction to High Court Civil Litigation Skills, Auckland, 25-26 November. Family Law Conference, Auckland, 21-22 November, pre-conference workshop, 20 November. Mediating Dangerously, workshop, Auckland, 15 November, Wellington, 18 November Negotiation Masterclass, Auckland, 27 November. Social South Island Devils Own Golf Tournament, 1-3rd November. To Lease Office to lease from January 2014 — 300 metres from Courts. 87m2, two offices, mediation room, reception, kitchen, toilet, shower, two car parks. Lease negotiable. Phone 0212048637 11 2 12 Canterbury Canterburytales tales 39 new lawyers admitted On Friday 20th September an Admission Ceremony was held and 39 new admittees joined the profession. One of these was Rachel Walsh. Rachel said that the admission ceremony was fantastic and everybody who attended enjoyed the experience. Rachel’s father, Judge Noel Walsh, was of course there to enjoy this special day with his daughter and as she acknowledges, “Dad inspired me to follow him into the profession”. Unfortunately her mother passed away six months ago but Rachel knows she would have been very proud of her and thanked her mum in her speech for getting her to where she is today. The ceremony was followed by an afternoon tea at The George where Rachel Dunningham and Stephanie Mann both welcomed the new admittees to the profession. The new admittees are: Gregory Stuart Belton-Brown, Adam David Cox, Michael Andrew Gibbs, Rachel Sarah Irwin, Sarah Elizabeth Leyser, Joanna Jen En Ling, Wathsala Tahani Ponnamperuma, Claire Elizabeth Riach, Katherine Semoe Rouch, Andrew John Sclater, Sarah Jane Simpson, Rachel Elizabeth Walsh, Rebecca Jane Ardagh, Jeremy Patrick Bell- Connell, Malaika Odette Cockerell, Hamish Gordon Rees Davies, Anna Mary Thomas Galvin, Troy James Gillan, Christina Margaret Gordon, Catrina Marie Hunter, Natalie Melanie Jones, Christopher Mark Jury, Catherine Janet McCallum, Rosemary Margaret Mein, Heather Fergus Neeson, Jonathan William Cranford Nicolle, Kimberlee Amber Gail Smith, Stephanie Anne Turner, Judge Noel Walsh and his daughter Rachel. Nadia Serena Watson, Miriam Margaret Catherine Black, Colenna Maree Collins, Belinda Frances Sheila Egden, Thomas Charles Glasson Nation, Harry Thomas Shaw, Jamie-Lee Tuuta, Dhamendra Ashok Unka, Kelsey Patricia Watson, Andrew James Palliser. ....still a way to go? The fact that more than 50% of the new admittess were female got Zylpha Kovacs thinking about the history of women jurors in New Zealand. Here she takes a quick look back. On the 26th October 1942 the Women Jurors Act came into force. This Act allowed, for the first time, women aged between 25 and 60 to volunteer to have their names placed on the jury list. 1943 saw the first female juror, Miss Elaine Kingsford, who sat on a case at the Auckland Supreme Court. While being interviewed at the time she made the “radical suggestion” that there may even be women judges in the future! Very few women took up the opportunity to serve on juries in the 1940s and 1950s. In 1963 the Act was amended to include all adult women’s names on the list — although they could claim automatic exemption. Automatic exemption was later updated to ensure both men and women had the same jury responsibilities. The 1940s saw a number of important milestones for New Zealand women, namely, first women police officers in 1941, Mary Anderson was the first women judge in 1945 and then her and Mary Dreaver were the first women to be appointed to the Legaslative Council in 1946. These milestones were due partly to the war and the number of men serving overseas. While the effects of the war advanced the position of women in New Zealand in the 1940s, the women’s cause was fought long and hard back in the 1890s by the suffragettes. This fight culminated in the Electoral Act of 1893 granting women the right to vote in parliamentary elections. New Zealand was the first self-governing country to give women the vote. Notwithstanding that, there was still a long way to go from there to 1919 for the right to stand for Parliament, the advances in 1940s and 50s, Equal Pay Act in 1972, Ministry of Women’s Affairs in 1985 to name a few. Some would say there is still a way to go while others suggest that today women can “do anything.”
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