Canterbury Tales - New Zealand Law Society

Canterbury tales
Canterbury tales
Canterbury Westland Branch New Zealand Law Society
February 2016, Vol. 22, No. 1
A rallying cry
By Nigel Hampton QC
At the Bar Dinner on 20 March 2015 I spoke to the
Minister of Justice about “the destiny of that beautiful
Victorian dais and canopy that has graced our superior
court for nearly a century and a half.
Surely room Minister for its incorporation in the new court. It is
history. Canterbury practitioners have fought to save it once. Must
we again?”
Ten months have gone by and there has been no change in Ministry
thinking about the fate of the dais. It seems that it is to be consigned
to the rubbish heap. Just prior to Christmas 2015 I wrote to the
Editor of The Press as follows:
“With reference to the article on the ‘safe, light and welcoming’
justice precinct, I draw to your readers’ attention the fact that an
important (and beautiful) piece of history, which should be an
integral part of the new courts’ complex, is to be left out of the new
building (and, presumably, will be bound for destruction).
“II refer to the Victorian-age kauri dais, canopy and judge’s bench
(see photographs below) that has graced Christchurch’s superior
court for some 150 years. Canterbury lawyers have fought hard to
save it from destruction before and to achieve its incorporation in
the present No. 1 High Court in the Durham Street court building.
It would appear that that fight must needs be litigated yet again.
“Historical architectural and design pieces have become endangered
species in Christchurch through earthquake damage — this
undamaged piece should not be allowed to suffer extinction through
the hands of untutored and/or uncaring humans”.
I understand that on 3 March 2016 the Secretary for Justice is to
talk to Canterbury practitioners about progress with the new courts
complex. I believe, strongly, that Canterbury practitioners should
attend this meeting to inform the Secretary of, inter alia, the
paramount importance of incorporating the dais, this piece of our
history, in the new building.
Auckland retains its historical dais, in its original court (now largely
used as a ceremonial court). Dunedin will retain its dais, in its original
setting. Wellington’s is incorporated in the Supreme Court. Is our
dais to be dismissed as an irrelevance? I trust not.
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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 (www.vinifinoco.nz,
188 Durham Street). Send your entry to the
Canterbury Westland Branch New Zealand Law
Society, P. O. Box 565, Christchurch. Or email
to canterbury-westland@lawsociety.org.nz. All
entries must be received by March 9 2016.
The winner will be announced in the next
edition of Canterbury Tales.
The winning entry for last month’s picture
(below) was submitted by Diana Shirtcliff,
“What do you mean low-fat alcoholfree Conference dinner?”
President’s Column
2015 ended on a sad note with the
death of Keith Hales, a longstanding and well-respected
member of the Rangiora Bar. Keith
had a broad general litigation
practice including roles as a Youth
Advocate, and was a very
experienced Lawyer for Child.
Keith was something of a character (Lord Hales
of Rangiora) and woe betide anybody who
dared to sit in his seat on the front bench at
the Rangiora District Court. John BrandtsGiesen’s obituary is elsewhere in this issue.
The council also recorded with regret the death
of David Sibley in January. David practised in
Timaru.
By the time this column is delivered to your
desks we will be well into the New Year and
for most of us I suspect the Christmas break
will be a dimming memory.
We will shortly be remembering the 6th
anniversary of the 22 February earthquake.
One of the buildings which is rising from the
rubble is the Justice and Emergency Services
Precinct, and in particular the Courts Building.
We are assured that it is on track and on time
for occupation by the Ministry of Justice by mid
2017. The Law Society Library will be in the
Court Building and there will be a Lawyers’
Room on the same floor as the majority of
Courts. This will have some library terminals
and other facilities.
Space is going to be at a premium and there
has already been a great deal of discussion
about whether the High Court canopy can be
incorporated in the new building (the Ministry
says it cannot), where the High Court judges’
portraits can be hung (an open question), and
what will happen to the other photographs and
artwork hanging in the existing library (still a
matter for debate).
The Secretary for Justice, Andrew Bridgman,
will be presenting an update on the project on
Wednesday 3 March at 430 pm. All lawyers
with an interest in the precinct are asked to
email christchurchprecinct@justice.govt.nz by
12 February to register. The location has not
yet been confirmed. This will be a good
opportunity to review progress so far, and to
raise points of concern.
The branch office has now returned to Durham
Street and Malcolm and his merry team keep
a benevolent eye on those of us making our
way through the Magistrate’s Court Archway
over the road.
In early January I had a meeting with Paul O’Neil
and John Sullivan of the Community Law
Centre. They are now in new offices in Montreal
Street. Although I have dealings with the
Community Law Centre over the years I was
surprised at the scale of the operation. With
23 practising certificates amongst their staff they
are the equivalent of one of the larger legal
firms in the city. Their activities go far beyond
simply giving advice, and the work of the
Residential Advisory Service is well known to
those who have dealings with earthquake work.
Despite some concerns about the CLC
trespassing on work which should properly be
done by private practitioners John and Paul
made it very clear that they see themselves as
filling an unmet legal need for clients who
would not necessarily be welcomed by most
private firms. They are also heavily involved in
providing legal education to schools,
community groups and other agencies.
Paul is going to be providing a series of articles
on the work of the Community Law Centre for
Canterbury Tales over the next few months,
which I think members will find enlightening.
Speaking of Canterbury Tales, a decision
regarding the future publication of Canterbury
Tales now needs to be made in view of the
retirement of Durning PR (John Durning) as
publishers. We need your help to continue this
publication and I urge you to refer to the article
in this magazine from the Branch Manager
Malcolm Ellis as to how the future of
Canterbury Tales can be secured.
Craig Ruane
A1 Book Restorer
Darren Rigden, Craftsman
Restoration/Binding Specialist
NZLS & MOJ Endorsed
Ph 981-2275 or 027 671-4440
a1books@paradise.net.nz
www.a1bookrestorer.com
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3
Obituary — Keith Hales
By John Brandts-Giesen
Keith George Hales, a well-known
and colourful lawyer, died on New
Year’s Eve 2015, aged 67.
Keith prided himself on being a “Strowan boy”,
although in his youth that part of the city was
still known as Papanui! He attended
Christchurch Boys’ High School and graduated
from Canterbury University while employed in
the Trust Department of NZI.
In 1976 he joined Helmore Bowron & Scott
(now Helmore Stewart) and soon thereafter
became a partner.
Keith was a versatile lawyer, one of a dying
breed of general practitioners who could run
an effective jury trial and complete a
complicated subdivision. He did sterling work
as a Youth Advocate and Lawyer for Children.
Keith served as a judge of the Judicial Racing
Authority which governs the codes of the
gallops, harness and greyhound racing.
He worked hard and played hard. He was a
good lawyer who prepared his files carefully
and presented his case with style. Keith was
the model small-town lawyer and built close
relationships with many people.
The Law, however, was only one part of his
life. In his earlier years he was on stage with
the Rangiora Dramatic Society, became a top
polling two-term councillor of the now defunct
Rangiora Borough, and later, with his wife
Miranda, a strong supporter of the visual arts.
When already over the age of 40, he learnt to
ride (horses) and joined the Brackenfield Hunt.
He served on the Northern A&P Association
Committee for 15 years and was appointed a
Canterbury Tales is the official newsletter of
the Canterbury Westland Branch New
Zealand Law Society.
Publications Committee: Zylpha Kovacs
(convenor), Simon Shamy (editor), Carolyn
Browne, Ann Maria Buckley, Daniel
Weatherley, Beatrix Chin.
All correspondence and photographs should
be forwarded to: The Branch Manager,
Canterbury-Westland Branch New Zealand
Law Society, Level 1, 307 Durham Street,
Christchurch. PO Box 565 Christchurch.
Phone 366-9184, fax 366-9977, email
canterbury-westland@lawsociety.org.nz.
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.
Keith Hales....the model small-town lawyer.
Paul Harris Fellow for his services to the
community by the Rotary Club of Rangiora. He
was an ex-president of the North Canterbury
Racing Club. Keith was the founding Chair of
Big Brothers Big Sisters in North Canterbury
and he nurtured that into a strong and effective
child/youth mentoring service.
For a number of years until his death, Keith
was the Honorary Consul for Mexico. This
enabled Miranda and him to travel to Mexico
City and be introduced to the President. He
looked after the interests of Mexicans living or
visiting the South Island.
Keith’s (and others’) submissions to save the
Rangiora Court (to say nothing of its Helmore’s
Seat which he guarded with sometimes
excessive zeal) were ultimately unsuccessful.
Ironically, its closure coincided with the onset
of his final illness. He fought that illness with
equal vigour.
While having retired from his partnership, he
carried on valiantly as a consultant until a few
weeks before his death. He orchestrated his
large open-air funeral with the finesse of a
Maestro.
Keith is survived by Miranda, his daughters
Virginia and Fran, and two infant grandsons.
An earlier tribute to Keith Hales’ work in the
Rangiora Court can be found in Canterbury
Tales (March 2014).
Canterbury Tales needs your help
After nearly 21 years, Durning PR (John Durning) is retiring as the publisher of
Canterbury Tales. We have been so grateful to John and his team, Kevin
McMenamin and Jim Kennedy, for the part they have played in getting a hard
copy of Canterbury Tales to each of you for the 11 editions each year.
We now must decide if we can continue to publish Canterbury Tales in hard
copy form. We have options. A key factor in deciding the future is the income
generated by advertising and this is where we need your help. Advertising is the
life-blood of any periodical publication and Canterbury Tales is no different.
I urge you to encourage your clients to take advantage of the modest display
advertising rates and the discerning and wide ranging readership.
Opportunities also abound in the classified section for you to get your practice
message in “Practice Notices” section and “Situation Vacant” section.
Jim Kennedy on (03) 342-5457 or mobile 027 577 7139 is your advertising contact.
He and we would love to hear from you.
Malcolm Ellis, Branch Manager
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Decision fatigue, losing weight
and personal finances
By Andrew Nuttall
Director, Bradley Nuttall Ltd
Recently I met with a lawyer and
her husband, as they were
motivated to take time out to plan
together the year ahead.
Over the years I’ve noticed that the most
frequently mentioned financial goals are to save
more money or reduce debt. We all know that
spending less than what we earn is good for
us but while it’s easy to say, it’s not necessarily
easy to do. It’s a bit like having a goal to lose
weight. We know that we need to eat less and
exercise more but it’s easy to say it and harder
to do it and stick to it.
What would be the benefits to us if we could
do those simple things? What would our
balance sheets and waists look like?
Having an obvious solution doesn’t necessarily
make it any easier to change our behaviour
and repeat these “simple tasks”.
Decision fatigue might explain why it’s difficult
to stay disciplined because as the number of
decisions we make increases, the quality of our
decision making can decrease.
Library news
By Julia de Friez
Librarian
If your New Year’s resolution was to brush up
on your legal research skills, contact the Library
to arrange an individual or small group research
training session. The Library offers 30-50
minute training sessions with an experienced
researcher where the content of the training is
tailored to what you need. To book contact
julia.defriez@lawsociety.org.nz.
Catalogue
Remember you can search the Library
catalogue on the NZLS website to see what
the Library has available.1
For best results, use the “advanced” search
option. Once you have a list of search results,
click “Year” on the grey bar at the top, to see
the most recent titles first.
Catalogue records for our more recent materials
include contents notes, so using a “keyword”
search will search across any contents notes
as well as titles. A tip when searching for NZLS
seminars, enter “New Zealand Law Society” in
the author field, combined with a relevant
search term in the keyword search box. A useful
feature is the “New tables of contents” tab on
the catalogue toolbar which lists new ‘tables of
contents’ for texts, journals and law reports
received by the Library within the last month.
Recent journal articles
You can also use the Library catalogue as an
easy way to keep up to date with the latest
journal articles. A “Current Table of Contents
[View PDF] link” can be found on the catalogue
record for individual journal titles to which we
have a current subscription.
New books
Recent additions to the Library’s collection
include: Benjamin’s Sale of Goods with
special supplement edited by Michael G Bridge,
9th edition (2014); Boundaries and
Easements by Colin Sara, 6th edition (2015);
Chitty on Contracts Volume 1 General
Principles by Hugh Beale, 32nd edition (2015);
Company Law in New Zealand by Peter Watts
et al., 2nd edition (2015); Exclusion Clauses
and Unfair Contract Terms by Richard
Lawson, 11th edition (2014); Hudson’s
Building and Engineering Contracts edited
by Nicholas Dennys & Robert Clay, 13th edition,
(2015); Law of contract in New Zealand by
Burrows, Finn and Todd, 5th edition (2016);
MacGillivray on Insurance Law by John Birds
et al., 13th edition (2015); The Interpretation
of Contracts by Kim Lewison, 6th edition
(2015); The law of contract by GH Trietel &
Edwin Peel, 14th edition (2015); Tudor on
Charities by William Henderson et al., 10th
edition (2015).
Readers may recall earlier articles in which I
referred to a study about judges and how
prisoners were less likely to be successful with
their parole applications if they were heard just
before lunch compared with cases heard first
thing in the morning.
It appears that our self-control can be found
wanting if we are tired or anxious. A good
example of this is how much undisciplined
eating can occur after work!
Planning and goal setting is important but they
are both of limited value if we don’t take action,
implement and modify our behaviour.
The best way to achieve results and reduce
decision fatigue is to automate as many
processes as possible. Look for ways to reduce
the number of decisions you have to make on
a daily basis. Repetition and automation can
help reduce the drag which results from
decision overload.
Plan your meals in advance, eat the same things
each day for breakfast, as well as for lunch and
dinner. Exercise at the same time each day,
keep the things you like to eat but know you
shouldn’t out of the house.
Go to your bank and setup separate accounts
to cover different categories of expenditure and
feed those accounts by automatic payment on
the same day each month or fortnight. Increase
your regular monthly mortgage repayments.
Automate your savings into a separate bank
account or into your investment programme.
Some of these actions may seem simplistic or
even boring but successful investing and
personal finance isn’t supposed to be exciting.
Andrew Nuttall is an Authorised Financial
Adviser at Bradley Nuttall Ltd. His disclosure
Statement is available on demand and free
of charge. He can be contacted at
andrew@bnl.co.nz or phone 364-9119.
Has your client considered
including a charity in their will?
Contact Library
For any further information or research or
document delivery requests, email
canterbury@nzlslibrary.org.nz or phone 377-1852.
DISPERSAL SPECIALISTS OF DECE ASED ESTATES AND DOWNSIZING HOMES
• We work with family members, estate executors, trustees and solicitors
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• Catalogue household items for the trustees approval for dispersal
• We prepare the house for sale with a focus on maximising the value.
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Email: estatemattersnz@gmail.com
to leave a legacy to St John that will
provide a vital service to benefit their
community.
Email fundraising@stjohn.org.nz
or call the Legacy Coordinator
South Island Region for
further information:
03 353 7110 ext 3238
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The singing solicitors
By Celia Barker
Jared Holt (Chapman Tripp,
Wellington) and Mark Tavendale
(Tavendale and Partners) sang
together at school, and later flatted
together.
On Saturday 21st November, Jared was the
guest star of the Opera Club performance at
the showrooms of Armstrong Prestige, and
joined with the Opera Club members, Mark
Tavendale and Mark Hadlow, to provide a
wonderful evening to a packed showroom of
guests invited by Armstrong Prestige and
members of the Opera Club. Among the guests
were a number of Christchurch lawyers.
Jared and Mark both trained initially under
Christchurch music teacher Clifton Cook, with
Jared, a Mobil song quest winner, going on to
the Royal College of Music and a distinguished
international opera career.
Somehow he is now combining the demands
of two tough careers, opera and the law. He
has returned from singing full time
internationally and lives in Wellington with his
family. He was critically acclaimed for his
performance in a lead role in New Zealand
Opera’s Madam Butterfly at the Lady Issac
Theatre last winter. On the day of opening he
was in the Christchurch office of Chapman Tripp
doing billable hours! Law and Opera can be
gruelling masters.
As well as singing several solos, Jared, along
with Mark Tavendale and Mark Hadlow, created
a Christchurch version of the three tenors,
singing Nessun Dorma to a very appreciative
audience.
Mark Hadlow had double duty and acquitted
himself, singing well and, as one would expect,
Jared Holt, Sharolyn Kimmorley, Mark Tavendale and Mark Hadlow pictured after the
Opera Club concert.
was very funny as the MC. Various other
members of the Opera Club also sang during
the evening, all with the extraordinary strong
accompaniment of internationally renowned
Sharolyn Kimmorley.
She was instrumental in forming the Opera
Club shortly after the earthquakes and her
regular visits from Sydney have been uplifting
for the performers, some seriously affected by
the earthquakes, and provided an outlet for
many singers. Singers are driven to keep singing
and it has a happy affect on audience too!
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26
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MoJ Christmas function
The annual Ministry of Justice Christmas function
was held on Tuesday 8th December at the
Christchurch RSA.
Court staff, judges, lawyers, Law staff and
Corrections staff all attended. It was a very
successful evening with more than 200 attending.
Sally Croy, on behalf of the Courts party
committee, would like to thank all those who
contributed to this end-of-year function.
THE CHRISTCHURCH
KIDNEY SOCIETY INC.
A Patient Support Group
Can your clients help us to help others
and leave a last legacy, so that we
may provide Support, Care Packs,
Equipment and Dialysis Campervan, for
the relief and rehabilitation of patients
affected by chronic kidney disease?
Please contact:
email: c.ks@xtra.co.nz ph: 3795529
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BOOK REVIEW
Burrows and Cheers’ Media Law
in New Zealand (7th Edition)
By Todd Nicholls
New Canterbury University Law
School Dean Ursula Cheer, the sole
author of the 7th edition of Burrows
and Cheers’ Media Law in New
Zealand, has produced not only the
latest edition of the pivotal text on
the topic in New Zealand but a
timely reminder about the evolving
issues surrounding media
freedoms and the flow of
information generally.
The advances in technology and increase in
the speed of information-exchange since 1974
when John Burrows first wrote this text have of
course been substantial. As a result, this text
has become far broader and certainly a good
deal more important contextually.
Cheer is well aware that the developments in
media law affect not only the media but also
wider society. She writes, for example, that since
the last edition of this work the defence of
qualified privilege in defamation appears to be
moving towards a true public interest defence.
This test is now more in line with the broader
position in United Kingdom defamation laws.
Cheer also tackles the often-controversial issue
of name suppression which, as she points out,
is particularly timely in light of the new statutory
framework in the Criminal Procedure Act 2011
and the ongoing debate about when it should
be granted.
I found Cheer’s wide analysis not only relevant
but also thought provoking. With respect to the
issue of privacy, she rightly refers to the
introduction for an action into seclusion,
although that has apparently as yet not been
applied to media behaviour. It made me
question how far the line between the public’s
right to know and the individual’s right to keep
their affairs private will move.
What I also liked about this edition (as well as
in previous editions) was its layout. While the
text is substantial, it is nicely laid out and it
means that it is very easy for readers to navigate
their way around it. In this regard the publisher,
LexisNexis, have made this text accessible as
well as being authoritative.
That all said, this book’s biggest strength might
be its biggest weakness. Media Law in New
Zealand is now such a large topic that this book
is in effect several books in one and far more
than the practical guide that Burrows first wrote.
As a result I wonder whether its
comprehensiveness may scare off some
general readers.
This work therefore straddles many domains
and topics and I wonder whether it will appeal
to a more theoretical as opposed to a practical
audience as it was in part first intended. Still, it
is written in friendly, every-day language that
should not lose any reader.
That though is a minor aside as Cheer should
be richly praised for continuing the legacy that
Burrows (and Burrows and Cheer more
recently) created.
Todd Nicholls is a criminal lawyer with the
Public Defence Service in Christchurch and
with a particular interest in media law and
sport law as well as criminal law. He is also
a writer and a journalist (he has a Diploma
in Journalism from Canterbury University).
He has written three books.
Gold Medals presented
REACHING THOSE WHO
CAN’T REACH OUT
Anglican Care provides critical social
services in the Canterbury area:
• The City Mission
• Anglican Aged Care
• Community Development
• Anglican Care South Canterbury
We do this vital non-denominational
work with financial support from the
community. This includes bequests.
Can your clients help us to help
others and leave a last legacy?
Email or call us for more details.
Phone: 03 348-6960
email: reception@anglicanlife.org.nz
On Friday 18th December a function was held in the NZLS Canterbury Westland branch
seminar room to present the 2014 Canterbury Westland Gold Medal In Law Awards. The
joint winners were Rosie Kós and Alison Chamberlain (pictured above left to right wirh
NZLS Canterbury Westland Branch president Craig Ruane).
Rosie, whose father is The Honourable Justice Stephen Kós from the Court Of Appeal and
her family and Alison and her family were all able to get together in Christchurch and
therefore a joint ceremony was held.
When presenting the awards Craig Ruane congratulated the winners and wished them
well in their future careers.
Professor Jeremy Finn from the University of Canterbury attended the presentation
representing the School of Law in his capacity as Acting Dean.
Canterbury tales
9
Parry Field head west
While many locals will be saddened
at the closure of long-time legal
practice Murdoch James & Roper
on 23 December, the good news
is that a new practice, with strong
local links, is being established in
the old offices, re-opening for
business in the new year.
Christchurch law firm Parry Field Lawyers are
pleased to announce the opening of a new
practice on 18 January 2016, for the residents
of Hokitika and the wider West Coast. Initially
staffed by an Associate of Parry Field Lawyers,
the new practice will retain the services of
existing legal secretary, Trudy Henderson, thus
ensuring continuity of service.
Parry Field Lawyers already have a strong link
with the West Coast, and in particular Hokitika,
with Partner Tim Rankin, born and bred here.
Many will warmly remember Tim who attended
Westland High School and was Dux in 1990.
“I have very fond memories of life in Hokitika,”
says Tim. “While studying for my law degree at
Canterbury I was always drawn back for
summer holiday jobs including as clerk for a
Greymouth law firm.”
“This is a great opportunity to contribute to my
home town, and it was easy to convince my
partners to expand our legal services to full onthe-spot local representation when this
opportunity arose,” adds Tim.
Formed in 1948, Parry Field Lawyers have
developed a strong reputation in both personal
issues law and commercial and corporate law.
Parry Field’s founders, Glyn Parry and Brian
Field, were both well-respected lawyers but
were also heavily involved in church and
charitable matters. This brought a strong ethical
element into their practice and this has been a
Compass
Who will buy
your business?
Do you want to
grow your business?
cornerstone of the business ethos ever since.
In addition to a comprehensive range of legal
services including commercial and property,
wills and estates, trusts, litigation and dispute
resolution, family law, employment law and
immigration, Parry Field Lawyers have also
established a charitable trust into which they
both receive and contribute funds. The
investment income derived is applied in
support of the work of a number of worthwhile
charities.
“Parry Field Lawyers have always had good faith
in the West Coast economy with a long time
commitment to a number of Coasters as clients
already. We are looking forward to discussing
any legal requirements of present and former
clients of Steve Woulfe as well as assisting new
clients,” says Tim.
Comings & Goings
Information for this column must now be sent directly to the Canterbury Westland branch due
to privacy issues. We assume that by the firm supplying the information that the individual
people have agreed to their names being published. Please send information regarding changes
to firms or practitioners to susan.newman@lawsociety.org.nz with subject heading Comings &
Goings.
Left
Daniel Chisholm, left Papprills 28 January.
Timothy Trollope has resigned from the Partnership of Papprills and left the firm 31 January.
Jay Pierce has left Anthony Harper Lawyers as from 19 February 2016 and will be starting with
Gallaway Cook Allan (Dunedin) on 7 March.
Change of status
Andrew Oh, Sarah Townsend and Sarah Watson are now partners at Duncan Cotterill.
Joseph Morrison is now an associate of Parry Field Lawyers, based in the new Hokitika branch.
Tim Gresson of Gresson Dorman & Co (Timaru) has retired as a partner as from 1 December
2015 but will continue as a consultant.
New firm/barrister
Brian Pelham is now practising as a Barrister Sole, PO Box 8310 Riccarton, and Christchurch
8440, phone 022 0393 212.
Change of details
Michelle Barrell — PO Box 33477 Barrington 8244 Christchurch, phone 337-9338 and 021
025 46242. Email remains the same barrellma@ihug.co.nz.
Pegasus Chambers has moved to Level 1, 205 Durham Street, Colin Eason, Robyn Mackie and
Carolyn Browne may be contacted on 348-0778 and their usual email addresses. The postal
address remains PO Box 2987, Christchurch 8140.
Hill Lee & Scott — new postal address, PO Box 79243, Avonhead, Christchurch 8446.
Parry Field Lawyers have opened a Branch Office in Hokitika, 26 Weld Street, PO Box 4, phone
(03) 755-8673, fax (03) 755-8073.
The firm of Murdoch James and Roper (Hokitika) is now closed.
White Fox & Jones, Ashburton office — now operating from Level 1, 160 Havelock Street,
Ashburton. PO Box, phones etc remain the same.
Alister James, Barrister, 92 Chester Street.
Stephanie Marsden, Barrister, PO Box 9344, Tower Junction, Christchurch 8149.
Geoff Brodie, Barrister, chambers now at 20 Bealey Avenue. Mail should be sent to 31 Carlton
Mill Road. He no longer has a PO Box number.
2
10
Canterbury
Canterburytales
tales
Is business valuation worthwhile?
By John Dobson
There are a number of simple
things you can consider to help
determine whether a business
valuation would be worthwhile.
Assessing the value of a business can be tricky
and both expensive and time consuming.
Legal practitioners often need to assess whether
the cost and time associated with completing a
valuation is justified in order to advise a client.
A useful starting point is the most recent set of
financial statements which usually give at least
two years of information on the financial
performance and position of the business. Using
financial statements and following the flow chart
below, you can begin to determine whether a
valuation may be worthwhile.
Step 1 — Does the business have
positive equity?
The first thing to consider is whether the
company which owns the business has positive
equity (in other words, are assets greater than
liabilities)? This can be determined by referring
to the statement of financial position, or ‘balance
sheet’.
The balance sheet is a list of all of assets and
liabilities, generally shown at ‘book values’ which
importantly, may differ from ‘market values’. The
difference between the value of assets and
liabilities represents ‘equity’ (or ‘net assets’) and
will, in most cases, reflect a minimum value for
the company. If the company has positive
equity, it is likely to have at least some value,
and therefore, a valuation will likely be
worthwhile.
Step 2 — Does the business have
significant fixed assets?
If a company does not have positive equity, this
does not necessarily suggest it has no value,
for example, significantly undervalued assets on
a balance sheet may be distorting the equity
position. When reviewing the balance sheet
careful attention needs to be given to two things:
* Fixed assets — in many cases fixed assets
(which sometimes include land and buildings)
will be shown at their original cost price less
depreciation. Assets purchased many years ago
may be recorded at a cost price significantly
lower than fair market value which can have
the effect of understating equity.
Conversely, fixed assets could be recorded at
more than market value, in which case, equity
will be overstated. Therefore if a company has
a significant level of fixed assets, it is generally
wise to obtain a valuation.
* Goodwill — it is not uncommon to find
‘goodwill’ listed amongst other assets on a
balance sheet. This may represent the amount
paid for a business when it was originally
acquired, or could be some other value which
may not be a true reflection of the fair market
value, which is goodwill realised if the business
were to be sold today. The reported equity
may actually overstate (or understate) true
value.
Step 3 — Is the company profitable?
Is the business operated by the company
profitable? This is determined by reviewing the
statement of financial performance, or ‘income
statement’. The income statement reflects the
profit (or loss) a business has made. From a
valuation perspective, a number of specific
considerations are required when analysing
reported profitability.
One of the most important considerations is
shareholder salaries — are the shareholders
paying themselves market salaries? If they are
paying either above or, more commonly, below
a market wage, the financial performance will
be distorted, and a good business with a large
degree of goodwill may appear unprofitable,
and vice versa.
In a general sense, the better the profitability of
a business, the more someone will be willing
to pay for it and consequently the higher the
level of goodwill. There are a number of specific
factors that can also influence the level of
goodwill including:
* the degree of reliance the business has on
its owner(s)
* the industry — two businesses making the
same profits may have different levels of
goodwill on account solely of the industries they
operate within
* the amount of investment required in fixed
assets and/or working capital — generally, the
higher the required investment in fixed assets
and working capital (i.e. stock and receivables),
the lower the goodwill
* the growth prospects for the business — a
higher growth business will invariably have a
higher level of goodwill than a business with
lower growth prospects
When analysing profitability you should also
note that ‘net profit after tax’ may not be the
most appropriate measure of profitability as it
can be distorted by financing structure (interest
costs associated with any debt), depreciation
and amortisation policies. It is generally
preferable to assess profitability based on
another measure of earnings, such as earnings
before interest and tax (EBIT) or earnings before
interest, tax, depreciation and amortisation
(EBITDA).
If having reviewed the balance sheet, you find
a company has no equity, little in the way of
fixed assets and is not profitable at an EBITDA
level (after adjusting to market salaries), chances
are it is unlikely to have any significant value. If
not, a business valuation is likely to be a
worthwhile exercise and you should seek to
engage a specialist business valuer.
Still unsure?
Please get in touch for a free, no obligation
discussion if you’d like further assistance
determining whether an independent valuation
will be beneficial for you and your clients.
John Dobson is an Executive Director with
PwC with over 25 years of business valuation
experience. John can be contacted on (07)
838-7411 or john.r.dobson@nz.pwc.com.
PwC firms help organisations and
individuals create the value they’re looking
for. We’re a network of firms in 157 countries
with more than 184,000 people who are
committed to delivering quality in assurance,
tax and advisory services. Tell us what
matters to you and find out more by visiting
us at www.pwc.co.nz. PwC refers to the PwC
network and/or one or more of its member
firms, each of which is a separate legal
entity. (c) 2014 PricewaterhouseCoopers. All
rights reserved.
First Published in The Property
Lawyer volume 15 issue 4
Canterbury tales
Articles sought
for Canty Tales
Canterbury Westland
Branch/NZLS
Education
Programme
Education - February issue:
NZLS Continuing Legal Education (CLE
Limited)
To register and for other information check
the CLE website,
www.lawyerseducation.co.nz
Christchurch
March
2 — Appeals to The High Court, Webinar.
8 — Employment and Discrimination,
Webinar.
8 — The Future of Law Firms — Breakfast
Seminar.
8 — Managing and Maximising Relationships
at Work.
21 — Intensive Health and Safety.
22 — Trust Account Administrator.
30 — Time Mastery.
April
4 — Influential Presentations.
11 — Natural Justice in Employment.
12 — Vulnerable Children.
12 — Law Firms and the “Age of the Client.”
13 — Torts Update.
21 — Leadership Series — Leadership and
Influence, Webinar.
May
2 — ADLS Sale and Purchase Agreement.
3 — Electronic Casebooks - Court of Appeal.
16 — Maori Protocols.
10 — Elder Law Intensive.
23-24 — Introduction to Company Law.
Out of Christchurch
10-12 March — Auckland — Stepping Up.
11 March Wellington, 15 March Auckland —
Triple your memory and confidence and halve
your stress.
16-18 March — Wellington — Lawyer For Child
Workshop.
17 March — Auckland — Estate Planning —
Digital Technology.
18 March — Wellington — Duty Lawyer.
22 March — Auckland — Shareholders
Remedies — Disputes and Deadlock.
4 April Auckland, 6 April, Wellington, Live Web
— Intensive Commercial Law.
5 April Wellington, 6 April, Auckland —
Education Law Intensive.
7-8 April Wellington, 14-15 April Auckland —
Introduction to Criminal Law Practice.
11 April Wellington — 12 April Auckland —
Women in the Law Conference.
14 April — Auckland - Property Auction Sales.
15-17 April — Auckland — Understanding
Mediation Part A.
20 April — Auckland — Trust Account
Supervisor Training Programme.
5 May — Auckland, 6 May Wellington and
Live Stream — Cyber Law Conference.
10-11 May — Auckland, 24-25 May
Wellington — Lawyer as Negotiator.
17 May — Family Courts Practical Navigation.
23-24 May — Auckland — Introduction to
High Court Civil Litigation Skills.
24 May — Wellington, 25 Auckland — PRA
Intensive.
24 May — Auckland- Consumer Law —
Advising Businesses.
27-29 May — Auckland — Mediation for
Lawyers Part B — Family.
30 May — Wellington, 31 Auckland —
Education Law Intensive.
Christchurch social
2 March — Sports Day, Elmwood Park.
7 April — Hunter Cup, Waimairi.
26 May — Family Law Dinner, Canterbury
Club, Guest of Honour, His Honour Judge
Somerville. Watch for flyers.
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PRINCIPAL
The Canterbury Westland Branch Council has
elected a new Publication Committee to oversee
the publication of Canterbury Tales. This
committee will be sourcing educational articles
and stories about lawyers’ lives, both at work
and play. Its job is to ensure that Canterbury
Tales continues to remain an informative and
interesting read. You can all assist the committee
by contacting any member to discuss an idea
or article that you would like published in
Canterbury Tales.
The members contact details are: Simon Shamy
(editor) — sjshamy@bridgesidechambers.co.nz;
Carolyn Browne — cb@carolynbrowne.co.nz; Ann
Maria Buckley — annmaria.buckley@cavell.co.nz;
Daniel Weatherley — drw@younghunter.co.nz;
Beatrix Chin — beatrix@layburn.co.nz; Zylpha Kovacs
(convenor) — Zylpha.kovacs@lawsociety.org.nz.
We look forward to receiving your ideas and
articles.
5 Day Mediation Workshops
The theory and practical skills of
mediation and conflict resolution.
Training mediators since
the early 1990s.
Christchurch: 3 – 7 May
Other dates available in
Auckland and Wellington
Register online or 0800 453 237
www.resolution.institute
Combining LEADR & IAMA
2
12
Canterbury
Canterburytales
tales
YLs plead not guilty
On a warm summer’s evening, Malcolm Ellis was feeling brave. It was a week
before Christmas. The brand new NZLS office on Durham Street had only recently
opened for business; its paint barely dry upon the walls.
The new boardroom had been used a few times, but never quite like this.
Malcolm wondered why he had trusted the Young Lawyers’ Committee when they
had asked to use the boardroom for their annual Christmas party....
The next morning, Malcolm returned to work and breathed a sigh of relief... until he
stepped into the kitchen. His secret stash of beer was no more.
It could have been worse. In the end, the boardroom escaped the worst of the
carnage. That would come later in the evening at various other locales, but that is
a story for another time.
The accompanying photos were all taken late in the evening and clearly show that
all in attendance were well behaved. The writer would like to make it clear that no
young lawyers were responsible for the consumption of Mr Ellis’ beer and no proof
exists to the contrary. Thanks must also go to the NZLS for kindly offering the use
of this fantastic new space — it’s great to be able to hold a boardroom bash back
in the city once again
.James Pullar
Editors note: Malcolm Ellis is hopeful that Grant Tyrrell does not read about
the “secret stash”.