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CAB-18-MIN-0556

Cabinet

Minute of Decision
This document contains information for the New Zealand Cabinet. It must be treated in confidence and
handled in accordance with any security classification, or other endorsement. The information can only be
released, including under the Official Information Act 1982, by persons with the appropriate authority.

Additional Item: Request for Crown Indemnity for Expenses of Legal

Representation

Portfolio Attorney-General

On 5 November 2018, Cabinet:

1 noted that former Ministers Hon Paula Bennett and Hon Anne Tolley seek indemnification
of legal costs incurred in defending a legal proceeding brought against them in the Auckland
High Court by the Rt Hon Winston Peters;

2 noted that the proceeding in question is an application for breach of duty to protect the
plaintiff’s private information under the Privacy Act 1993;

3 noted that the proceedings raise allegations relating to actions or omissions of the former
Ministers when they were Ministers;

4 noted that the Cabinet Manual provides that former Ministers may be indemnified by the
Crown for any actions taken against them for things done or decisions made in the course of
their ministerial duties;

5 noted that the Cabinet Manual also provides that where a Minister is threatened with legal
action personally and it is uncertain whether he or she should be indemnified, the normal
arrangement is to seek Cabinet’s agreement in advance to meet the expenses of legal
representation, and the question of indemnity on costs and damages will be held over until
judgment has been given;

6 noted that the expenses of legal representation for the former Ministers in the proceeding is
unknown, and is difficult to estimate at this point;

7 noted that the Attorney-General’s view is that indemnification of the former Ministers’
reasonable expenses of legal representation in these proceedings is appropriate, on the basis
of the present pleadings, and the facts that are known to him;

8 agreed that the government should meet the reasonable expenses of legal representation of
the named former Ministers in defending the proceeding;

9 agreed that the indemnity should be withdrawn if at any subsequent point it becomes
apparent that the former Ministers had acted beyond the scope of their authority or
dishonestly or in bad faith to the point that withdrawal of the indemnity becomes
appropriate, and that the former Ministers will be told that that is the basis on which an
indemnity has been approved;

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CAB-18-MIN-0556
10 noted that Crown Law has been directed to monitor the proceedings and advise the
Attorney-General if any grounds emerge suggesting the indemnity should be withdrawn;

11 agreed that the question of whether an indemnity should be issued in respect of any costs or
damages that may be awarded against the former Ministers in this proceeding should be held
over at least until the proceeding is resolved;

12 noted that the statutory decision to give the indemnity will be taken by the Minister of
Finance under section 65ZD of the Public Finance Act 1989;

13 agreed that the expenses of legal representation for the former Ministers in the preliminary
proceeding be met from Vote Social Development and States Services in equal shares.

Martin Bell
for Secretary of the Cabinet

Hard-copy distribution:
Prime Minister
Attorney-General

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