Canatan Holdings Pty Ltd v Audori Pty Ltd & Ors [1995] FCA 131

Canatan Holdings Pty Ltd v Audori Pty Ltd & Ors [1995] FCA 131

The firm was entitled to protection over the party and party costs because the recovery of those costs resulted from its work and, consistently with Worrall v Power & Power, it had an equitable right in the costs order when pronounced. The Court also found that Canatan agreed that the firm could have first access to the costs in the proceedings for moneys owed by Canatan, the Stoodleys personally and an associated company. The appropriate relief was a lien over the costs held by the fourth respondent and payment into the firm's trust account pending taxation, with accounting to Canatan after payment or deduction of taxed solicitor and client costs and other owing moneys. Indemnity costs...

Jurisdiction
Australia
Judgment Date
22 February 1995
Procedural Posture
Motion by Former Solicitors for Declaration of Lien or Equitable Charge Over Party and Party Costs / Judgment on Motion After Judgment and Costs Order in the Principal Proceedings
Outcome
Motion granted in part; lien declared and payment ordered, with party and party costs awarded to the applicants on the motion and indemnity costs refused.
Legal Topics
["solicitor's Lien Over Costs" 'equitable Lien' 'party and Party Costs' 'solicitor and Client Costs Taxation' 'trust Money' 'indemnity Costs']
['costs' 'legal Profession' 'equity' 'civil Procedure'] ["solicitor's Lien Over Costs" 'equitable Lien' 'party and Party Costs' 'solicitor and Client Costs Taxation' 'trust Money' 'indemnity Costs']

Case Brief

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Procedural Posture

Motion by Former Solicitors for Declaration of Lien or Equitable Charge Over Party and Party Costs / Judgment on Motion After Judgment and Costs Order in the Principal Proceedings

Legal Issues

  1. 1 ['Whether the applicants on the motion were entitled to a statutory charge under section 39A of the Legal Practitioners Act 1898 over the costs in the proceedings.' 'Whether the applicants on the motion had an equitable lien or equitable charge over the party and party costs recovered by Canatan.' "Whether Canatan agreed that the firm's costs could be deducted from the party and party costs." 'Whether the applicants on the motion should receive indemnity costs of the motion.']

Ratio Decidendi

The firm was entitled to protection over the party and party costs because the recovery of those costs resulted from its work and, consistently with Worrall v Power & Power, it had an equitable right in the costs order when pronounced. The Court also found that Canatan agreed that the firm could have first access to the costs in the proceedings for moneys owed by Canatan, the Stoodleys personally and an associated company. The appropriate relief was a lien over the costs held by the fourth respondent and payment into the firm's trust account pending taxation, with accounting to Canatan after payment or deduction of taxed solicitor and client costs and other owing moneys. Indemnity costs...

Court Disposition

Motion granted in part; lien declared and payment ordered, with party and party costs awarded to the applicants on the motion and indemnity costs refused.

Orders

  • ['Declare that the applicants on the motion have a lien over the party and party costs currently held in trust by the fourth respondent.' 'Order the fourth respondent to pay the said moneys to the applicants on the motion.' 'The applicants on the motion are thereafter to hold the said moneys in trust for the first...