Abbott trading as Piper Alderman v Pilot Development Corporation Pty Limited (in liq) [2006] NSWSC 1178

Abbott trading as Piper Alderman v Pilot Development Corporation Pty Limited (in liq) [2006] NSWSC 1178

There was no principle prohibiting extension of a solicitors' equitable lien to damages awarded against a party who gave the usual undertaking as to damages. Although such damages are separate from damages in the main proceedings, they are an integral part of the proceedings in which Pilot was exposed to loss by the injunctions. Piper Alderman acted for Pilot when it succeeded before Windeyer J and in the Court of Appeal and assisted in achieving discharge of the injunctions, which was the step entitling Pilot to seek damages. That provided a sufficient causal link for an equitable lien over any fund available from the inquiry as to damages.

Jurisdiction
Australia
Judgment Date
01 November 2006
Procedural Posture
Application Concerning Solicitors' Equitable Lien for Costs / Judgment on Application for Declarations and Orders
Outcome
Application granted; declarations and orders made, with a stay to allow Capital Access NSW Pty Ltd an opportunity to be heard.
Legal Topics
["solicitors' Equitable Lien for Costs" 'usual Undertaking as to Damages' 'interlocutory Injunctions' 'inquiry as to Damages' 'priority Over Secured Creditors']
['equity' 'civil Procedure' 'legal Profession'] ["solicitors' Equitable Lien for Costs" 'usual Undertaking as to Damages' 'interlocutory Injunctions' 'inquiry as to Damages' 'priority Over Secured Creditors']

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Procedural Posture

Application Concerning Solicitors' Equitable Lien for Costs / Judgment on Application for Declarations and Orders

Legal Issues

  1. 1 ["Whether a solicitors' equitable lien for costs applies to damages that may be awarded after an inquiry as to damages consequent upon the usual undertaking as to damages." "Whether Piper Alderman's work for Pilot had a sufficient causal link with any damages recovered under the undertakings as to damages."]

Ratio Decidendi

There was no principle prohibiting extension of a solicitors' equitable lien to damages awarded against a party who gave the usual undertaking as to damages. Although such damages are separate from damages in the main proceedings, they are an integral part of the proceedings in which Pilot was exposed to loss by the injunctions. Piper Alderman acted for Pilot when it succeeded before Windeyer J and in the Court of Appeal and assisted in achieving discharge of the injunctions, which was the step entitling Pilot to seek damages. That provided a sufficient causal link for an equitable lien over any fund available from the inquiry as to damages.

Court Disposition

Application granted; declarations and orders made, with a stay to allow Capital Access NSW Pty Ltd an opportunity to be heard.

Orders

  • ['By consent, declaration (a) in the short minute of order initialled and dated 1 November 2006 was made.' 'By consent, the declaration in paragraph (b) of the short minute of order together with Rider No 1 was made.' 'The declaration in paragraph (c) of the short minute of order together with Rider No 2 was made.'...