Political overreach

The courts and judges have come in for criticism of late. Roger Partridge of the New Zealand Initiative was critical late last year of recent decisions of the Supreme Court in a lengthy paper entitled “Who makes the law?” - the obvious answer being Parliament.

- David Harvey

New Zealand First MP Shane Jones, likewise was personally critical of a High Court judge last year and “had words” with the Attorney-General Judith Collins about his comments. Last month at a Law Association lunch, Jones criticised what he called the “Americanisation” of the judiciary and of judicial activism, arguing it is Parliament that is sovereign.

But what happens when Parliament itself travels outside its lane? What remedies are there for legislative overreach when Parliament is sovereign?

An amendment to the Credit Contracts and Consumer Finance Act has been introduced. The act prescribes a number of circumstances where financiers have a duty of disclosure to customers. If disclosure rules are breached, the lender forfeits interest rates and fees on the transaction.

Two banks, ANZ and ASB, failed to make proper disclosure and are subject to claims on behalf of 173,000 customers - a sizable cohort. Court proceedings are well under way.