Newsletter - May 2024
The winter chill seems to have arrived early this year, with May bringing some very cool temperatures across the country, along with a very sudden cold snap. We were however treated to a spectacular display of lights over the country as the earth was subjected to a solar storm - a fair few of us braved the colder nights to take some incredible photos (the above was one taken by one of the team).
Despite the longer nights and cooler temperatures, the team at Turner Hopkins have been keeping warm, by keeping very busy.
Meet Samuel
Meet Kate
This month we saw two of our team, being promoted to Partners - congratulations to Kate Chivers and Samuel Ames. Kate works in our property division and Samuel looks after wills, trusts and estates in our private client team. Their appointment as Partners brings more depth and experience to the leadership team, as the firm looks forward to the future and another 100 years of providing outstanding client service.
We were also able to utilise our office space (and great views) to host several events this month, including a very well attended, Pink Ribbon breakfast, which resulted in $3,000.00 worth of fundraising to go towards the New Zealand Breast Cancer Foundation.
Of course all of this activity is alongside the work we continually do for our clients and so this month we have pulled together a few examples of that work (and the solutions we have been able to offer) from various teams within the firm.
Our property team have provided a very useful case study on some of the issues faced by commercial landlords with the resounding message that planning and having good, robust networks can help in avoiding any number of unwanted issues. Samuel from our private client team relays a unique situation faced by one of his clients and the solution that was created for them and finally our immigration team explain how persistence, patience and knowledge are often the best ammunition when dealing with the complexities of the visa process.
Trusts, Wills & Estates - A Case Study
Our approach to all legal matters is to see every situation in its own unique light and to treat every client with the focus and individualised attention required to not only listen, but to also understand the issue fully. This then allows us to work towards the best possible outcome.
Samuel Ames from our Private Client team adopts this approach and enjoys being able to tackle complex situations by understanding exactly what his clients are trying to achieve and then building a tailored solution around that need.
Finding The Right Solution
We get to know our clients and their unique issues, enabling us to find the most effective (and often simplest) solution.
In a recent case, Samuel assisted the daughters (also executors) of their late father's will, who faced significant challenges with their existing deed of family arrangement which had been signed without adequate legal advice. The arrangement already in place was defective and potentially prejudicial to the daughters and despite their rights under the Family Protection Act, they received almost nothing from the will, as the family home was owned by the deceased’s surviving partner.
The surviving partner had agreed, in the existing deed of family arrangement, to give our clients a share of the property upon her death; however, that agreement was flawed and would be unenforceable. This meant the daughters could lose a share of their father's estate.
Recognising the precariousness of the situation, Samuel and his team set about trying to remedy that issue, with the goal of providing our clients with some clarity as well as greater protection and certainty about their rights. An addendum to the original deed of family arrangement was drafted and agreed upon, to ensure that the daughters' rights were clearly defined and enforceable. This new agreement granted them the right to place a caveat on the partner’s property, securing their right to claim.
With the revised deed in place, our clients achieved a much-needed sense of certainty and security regarding their inheritance. This solution also provided them with enforceable rights at minimal cost compared to lengthy and uncertain court action. Our clients were ultimately pleased with the outcome, but also with the fact that the solution didn’t come with a significant expense and with minimal administration.
Family situations are often complex and can become even more challenging when discussions turn to the distribution of wealth upon someone’s passing. Our approach to these situations (and all legal matters) is to understand exactly how those situations came about, what our clients are aiming to achieve and then finding the most effective remedy in the circumstances, delivered in the most efficient way.
No matter how challenging your family situation might be, Samuel and his team have the experience, patience and expertise to find the right solution.
Commercial Property - A Case Study
When it comes to property issues (residential or commercial) our approach remains consistent – although sometimes we end up teaching a few lessons to clients who haven’t been as prepared as they could have been. Kate Chivers and her team recently had a client that needed to issue a Property Law Act 2017 (“PLA”) notice for a breach of covenant to pay rent under a commercial lease. The PLA notice requires the tenant in default (and its guarantors) to remedy the default within 10 working days from the date of service or otherwise face cancellation under the Lease.
Think Fast, Act Faster
Acting on an issue as soon as it becomes known, and with the right advice on board, is often the best way to achieve the right outcome.
This lease had been set up by our client’s previous lawyer and there were limited securities available to our client in respect of the Tenant company and/or the Guarantor making payment for Landlord losses under the lease. In fact, the earlier Lawyer had the Tenant and Landlord reach an agreement from a previous arrears situation in the form of a Deed of Acknowledgement of Debt. Where the Tenant, having racked up a huge amount of debt in unpaid rent, acknowledged the debt and promised to make payment in 18 months’ time – presumably when his business started earning money. Again, there were no securities in this Deed of Acknowledgment of debt and when the Tenant again fell behind on rent, the earlier debt also needed to be paid in full. While there are always reasons to try and come to a fair and reasonable arrangement with Tenants in certain circumstances, the saying “Once bitten, Twice Shy” comes to mind.
Somewhat predictably, the tenant ran away from its obligations, left the premises overnight in what is called within the industry a “midnight flit” and our Landlord client was left with having effectively provided a non-paying tenant with over 18 months free rent. Our client was also substantially out of pocket with no real prospect of recovery and would suffer delays in finding a future Tenant until the premises were cleaned and prepared, so they were fit to re-let.
We are currently seeking to hold the Tenant to account through a summary judgment in the courts and will pursue the tenant for costs owed to our landlord client once the judgment is given.
The Landlord has also engaged us to assist with preparing the tenancy for a new tenant. We have provided the Landlord with options and advice regarding tenant due diligence processes, the benefit of taking a bond and ensuring the Tenant is suitably experienced with good business acumen. We also explained the benefit of using professional and suitably qualified property managers (which is usually a tenant outgoing cost on a commercial premises) and educated the Landlord on what to do as soon as a future tenant fails to meet its obligations under the lease (whether by not paying rent or by another act or omission).
The moral of the story for any commercial Landlord struggling with a Tenant’s non-payment is to deal with the matter as quickly as it is identified.
At Turner Hopkins we have wide industry connections and can help our landlords by not only offering legal advice and documenting agreements between parties but with a community of commercial professionals that are just one call away we can also help with other tenant and building related problems.
In terms of commercial property management there are experts within the industry that can assist you find tenants and keep that tenant happy for the long term, while managing your asset as a more passive investment as it was likely intended to be. We can also help with sales, purchases and lease disputes and we have a wide range of property experience from subdivision, development projects and building syndication purchases.
The key is to plan ahead, have contingencies in place and deal with issues as quickly as they arise. We want to ensure you are legally protected in the event of a Tenant default occurring. In any event and for whatever your legal property issue Kate and her team have you covered.
The Visa Process - A Case Study
Dealing with any Government department can be frustrating, but there is one department in particular that can challenge even the most patient of people - that department is Immigration New Zealand (INZ). Thankfully our immigration team (Turner Hopkins Immigration Specialists) have been working with INZ for long enough to know that patience and a good dose of persistence are the keys to achieving successful visa outcomes for their clients.
Patience, Persistence & Knowledge
When immigration rules are constantly changing, being able to stay the course is often the only way to ensure success.
We were recently approached by a client whose Resident Visa application was on the edge of a cliff, about to head for the rocky shores at the bottom. The issue was a little complex but also came down to interpretation. The applicant was relying on the fact she has completed a PhD in New Zealand which gave her the point she needed to meet the Skilled Migrant Category requirements. She had completed the course in its entirety and also had confirmation from the university that she met all the requirements for the award of the PhD, however the actual graduation wouldn’t take place for several months later. This is pretty common in most countries, where you complete the course but you only receive the certificate at some point in the future. INZ took issue with this because the rules state the following:
…the principal applicant must hold a qualification recognised on the New Zealand Qualifications Framework.
In this case, the applicant had completed everything needed to be given the degree, but simply had not yet received the formal certificate. On that basis INZ were aiming to decline the application outright. The applicant would have been able to reapply after the certificate was in hand, but that would have potentially required new documentation, another INZ processing fee and a lot of wasted time. With other issues bubbling away in the background, time was not on this client’s side, and nor was it financially viable to reapply.
INZ will tell you that they have no discretion in terms of Resident Visa requirements and this is generally true, but there are situations that warrant some common sense being applied, from someone able to bring it. We took a chance to do this by approaching the very senior layers of INZ directly, outlining why this situation was not good for the applicant but also didn’t reflect any of the objectives of our Residence policy, to encourage skilled, high-quality candidates to settle here.
It took several weeks and multiple pushes with INZ to achieve a result, but in the end the applicant was approved, by INZ using a decision authorised by a delegated decision maker - these are individuals that carry similar powers to the Minister to grant Residence as an exception, but work within INZ itself.
For the client this was a huge win, not only financially but also allowing her to attend her graduation ceremony as planned, whilst having the certainty of being able to live here forever.
As advisers our role is not only to ensure applicants meet the rules, but also to advocate for those where the rules just don’t make much sense. If you are stuck with an immigration issue or know someone that is, our team are available and ready to assist.
Turner Hopkins - In The Community
Giving Back
Over 100 years we have been able to give back to the local and wider communities, something we take great pride in doing.
When we relocated to our new offices at No.1 The Strand, we were intent on being able to use our new space for the benefit of clients and also the wider community.
With amazing views over Takapuna, an outstanding outdoor space as well as our internal staff facilities, we wanted to be able to give other organisations access to this space as well, particularly for hosting events that benefit the local community and charitable organisations.
This month, we hosted several great events, including a Pink Ribbon breakfast, coordinated by Kate Chivers and including food produced by Seven Hills Cafe (a local business), attendees from other businesses within the community as well as support from members of our team. The event was very well received and also raised $3,000 in donations to go the New Zealand Breast Cancer foundation.
We also managed to host events for two networking groups (Wynners and BNI) where people from the wider North Shore business community were able to meet and network.
Alongside this, we continue to support KidsCan in their efforts to tackle child poverty in New Zealand, particularly as economic conditions for many families tighten up and winter approaches (meaning higher energy bills). We encourage our clients to get behind these charities where they can and donate whatever spare change you might have available.
Finally, as an AUT Alumni and ex-competitor for law competitions, our very own Luis Paulo Santana De Mattos has been invited to help judge some of the current law competitions being held, where students compete in various facets of the legal profession, to hone their craft.
Luis is currently judging the “client interviewing” law competition for the AUT Law Students Association and Law faculty. Students compete through preliminary rounds all the way through to a finals event. They are measured by their ability to effectively run a client interview meeting which in turn helps them prepare for the practical world. Luis enjoys being able to participate in these events and in his own words:
I really enjoy being able to give back to current students and help them shape their professional skills for their future careers.
For many aspiring Law students, these events provide a bridge between the theory of Law and the practical application of what they learn in the real world. We are very supportive of Luis being involved in this as another way of being able to support future Law graduates.
That wraps up another month with the Turner Hopkins team. Next month as we reach the halfway mark for 2024 we will be sending out our Net Promoter Score (NPS) survey, which we hope you can participate in. Our last NPS survey was incredibly valuable in recognising the value we add to our clients and also things we can enhance and introduce to ensure our services stay up to date.
We will also be bringing you more useful legal news, tips and information, including feedback from our debt recovery team, case studies from our family law team and update on immigration settings.
Stay safe, stay warm and stay tuned.
The Team - Turner Hopkins
