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Case details

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

What action must a solicitor take when entering into an additional security arrangement with a client to avoid waiving its rights under a pre-existing equitable lien (or creating an inference of waiver)?

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 deed of charge with PHRL. The High Court held that the deed of charge signed by the Appellant was inconsistent in some respects with its rights under the lien. The Court of Appeal dismissed the Appellant’s appeal on both issues. The Appellant now appeals to the Supreme Court.

Judgment appealed

[2020] EWCA Civ 26

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