Candey Ltd (Appellant) v Crumpler and another (as Joint Liquidators of Peak Hotels and Resorts Ltd (In Liquidation)) (Respondents)
Case ID: 2020/0039
Case summary
Issue
In what circumstances will solicitors have waived (or be inferred to have waived) their equitable lien when a solicitor enters into a security arrangement with a client?
Facts
The Appellant acted as solicitor for Peak Hotels &; Resorts Ltd (“PHRL”), a company incorporated in 2014 in the British Virgin Islands (“BVI”). The Appellant represented PHRL in extensive litigation in England and other jurisdictions. PHRL was wound up in insolvency proceedings in the BVI and the Respondents were appointed by the BVI court to act as joint liquidators for PHRL. A dispute ensued between the Appellant and Respondents about a claim by the Appellant for unpaid legal fees owed to it by PHRL. The Respondents were ordered to pay some of the Appellant’s legal costs. In proceedings before the High Court, it was determined that a success fee was not recoverable from the Respondents and that the Appellant had waived its equitable lien over settlement monies that had been paid to PHRL during the litigation, when the Appellant entered into a fixed fee agreement and deed of charge with PHRL. The High Court held that the fixed fee agreement and the deed of charge were inconsistent in some respects with the Appellant’s rights under the pre-existing equitable lien. The Court of Appeal dismissed the Appellant’s appeal on both issues. The Appellant now appeals to the Supreme Court.
Judgment appealed
Parties
Appellant(s)
Candey Ltd
Respondent(s)
(1) Ruseel Crumpler,
(2) Christopher Framer (as Joint Liquidators of Peak Hotels and Resorts Ltd (In Liquidation))
Appeal
Justices
Lord Reed, Lord Briggs, Lord Kitchin, Lord Hamblen, Lord Stephens
Hearing start date
2 March 2022
Hearing finish date
3 March 2022
| Watch hearing | ||
|---|---|---|
| 2 March 2022 | Morning session | Afternoon session |
| 3 March 2022 | Morning session | Afternoon session |
Judgment details
Judgment date
21 December 2022
Neutral citation
[2022] UKSC 35
- Judgment (PDF)
- Press summary (HTML version)
- Judgment on The National Archives (HTML version)
- Judgment on BAILII (HTML version)
| Watch Judgment summary | |
|---|---|
| 21 December 2022 | Judgment summary |