Sithakoul v Su [2022] NSWSC 132

Sithakoul v Su [2022] NSWSC 132

Bridges Lawyers were entitled to maintain their lien over the file until reasonable security for their unpaid costs was provided. The applicant's offer did not amount to reasonable security because the entitlement to payment was not contingent on the outcome of the proceedings and security over disputed or uncertain funds does not equate to 'like for like'. The respondent did not act unreasonably and is entitled to costs of the application.

Parties
Applicant: Pheng Phane Sithakoul; Second Respondent: Bridges Lawyers Pty Limited
Jurisdiction
Australia
Judgment Date
18 February 2022
Procedural Posture
Notice of Motion in Pending Proceedings / Determination of Costs Following Consent Orders on Provision of Documents
Outcome
Applicant to pay the second respondent's costs of the motion; further show cause order as to fees charged by Longton Legal Pty Limited to applicant arising out of dealings with Bridges Lawyers Pty Limited.
Legal Topics
Legal Profession, Solicitor's Lien, Retention of Client Documents, Security for Costs, Professional Conduct, Delivery Up of Solicitor's File
Equity Costs Legal Profession Solicitor's Lien Retention of Client Documents Security for Costs Professional Conduct Delivery Up of Solicitor's File

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Parties

Pheng Phane Sithakoul

Applicant

Bridges Lawyers Pty Limited

Second Respondent

Procedural Posture

Notice of Motion in Pending Proceedings / Determination of Costs Following Consent Orders on Provision of Documents

Legal Issues

  1. 1 Whether former solicitors were entitled to exercise a lien over the client file after retainer was terminated until reasonable security was provided for costs
  2. 2 Whether the client's offer constituted 'reasonable security' for the purposes of the lien
  3. 3 Entitlement to costs of the application for delivery up of the file

Ratio Decidendi

Bridges Lawyers were entitled to maintain their lien over the file until reasonable security for their unpaid costs was provided. The applicant's offer did not amount to reasonable security because the entitlement to payment was not contingent on the outcome of the proceedings and security over disputed or uncertain funds does not equate to 'like for like'. The respondent did not act unreasonably and is entitled to costs of the application.

Court Disposition

Applicant to pay the second respondent's costs of the motion; further show cause order as to fees charged by Longton Legal Pty Limited to applicant arising out of dealings with Bridges Lawyers Pty Limited.

Orders

  • The applicant (plaintiff) pay the second respondent's costs of the motion.
  • Solicitors for the plaintiff, Longton Legal Pty Limited, to show cause why the Court should not order: (i) any costs charged to the plaintiff from dealings between Longton Legal Pty Limited and Bridges Lawyers Pty Limited from 19 October 2021 onwards be disallowed; (ii) Longton Legal Pty Limited indemnify the...