Blog
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Overview of the New Zealand legal system
New Zealand's legal system is based on English common law and the country's own laws and statutes, which are always evolving. This "Westminster" style system means there is often foundational legislation for a subject set created by its elected body (parliament) while interpreting and applying the law in the event of disputes is left to independent judges. New Zealand and England's systems have diverged over the last generation; England, being part of the UK, before Brexit had converged to some extent with applicable European-wide directives, while New Zealand, in a completely different context, has continued to incorporate the principles of the Treaty of Waitangi into its legal framework. New Zealand's common law (law created and developed by judges rather than parliament) has also diverged from England over time.
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IAG v QBE: a Case of No Interest
Interest is intended to reflect the wrongdoer's use of money pending judgment while the claimant has been out of pocket. This intention reveals the true nature of an award of interest. It is restitutionary. Its restitutionary nature is intended to address the passage of time between the event giving rise to primary liability to the date a Court determines the existence of that liability. At the time primary liability accrues, the claimant is worse off. The intention of a judgment is to, as far as legal theory allows, make the claimant whole. A claimant may do things that unduly delay the date of determination. During these periods, the clock is paused. This makes sense seeing as the liability to pay interest is contingent upon a determination which at that time has not yet occurred. The claimant in this sense does not sit on an accrued obligation awaiting vindication but rather he has elongated the passage of time. Money matters. Time matters. It is the combination of money's objective value and also the passage of time which compel a restitutionary award of interest.