Cross leases are a uniquely New Zealand form of land tenure, the implications of which are not widely understood by either the legal profession or by members of the general public. This note critically examines a recent High Court decision released in February 2020 concerning problems concerning a “staged” cross lease development. It suggests that the judgment in AAL Holdings Ltd v Dai is not only incorrect in its reasoning, but also sets a bad precedent for resolving future cross lease disputes.