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The New Zealand Court of Appeal has overturned 35 years of practice on when a cross-lessor may reasonably withhold consent to alterations, replacing the entrenched Smallfield v Brown detriment test with a fact-based reasonableness inquiry.

The AI use policy within the By Lawyers Staff Handbook has been updated to reflect the rapidly evolving professional environment, helping firms to align their use of AI with a clear compliance structure, reducing uncertainty, improving supervision, and lowering risk exposure.

Changes effective 26 May 2026 under the Crimes Legislation (Stalking and Harassment) Amendment Act 2025 include a new criminal offence of stalking and harassment, new aggravating factors under s 9 of the Sentencing Act 2002, and new powers for a court on a discharge without conviction.

Disputes over a cross-lessor’s refusal of consent to alterations are governed by a fact-specific reasonableness inquiry as set down in Liow v Martelli [2026] NZCA 101. The position is materially different from the long-standing test that applied under Smallfield v Brown (1991) 2 NZ ConvC 191,110, which was weighted in favour of the objecting neighbour.

Changes to AML/CFT now in effect include removing low risk trusts from the automatic obligation to conduct enhanced customer due diligence as regards verification of identity.