I got some emails from a lady that i was talking to about not being legalistic and the whole law thing. I didn't understand what she meant by this...
Poppy: It's the difference between a mere legalistic morality and genuine, sincere morality based in love.
The old Law of the Jews was defined in the Ten Commandments. If you contemplated doing something that was not obviously forbidden by the Commandments, you had to consult a rabbi for an evaluation, and he would determine the deed's morality. ('I know his ox and donkey are out of bounds, but what if I stole his lamb?') It made it possible for you to do someone else dirt while being, from a technical standpoint, blameless. It was a good system, but not perfect.
Christ brings humanity an entirely new revelation about morality and ethics that transcends--and replaces-- the old Law. It applies to how we think and feel, in addition to how we act. We are to act with kindness, love and empathy toward one another--not just see what we can get away with. If you always treat others as you wish to be treated yourself, you'll never hurt anyone again (the Golden Rule).
For example, you are legally obligated to stay at work until 5PM. As you are walking out the door, you notice that the secretary is rushing with some last-minute mailing. If you followed the old law only, you'd walk out the door feeling perfectly justified in your actions; after all you technically get off at 5PM--no one can blame you. But as a Christian, you'd empathize with her stress and and offer to lend her a hand, even if it cost you 5 unpaid minutes of your time.
That is what your friend means by 'above the law.'