Knock v. Owen

Knock v. Owen

The confessions of judgment were not wholly vitiated by the improper arrangement, but the judgments must be reduced by the amount representing the overcharge for counsel fees that were not actually paid to counsel; solicitors may take security for costs already incurred but must charge only reasonable remuneration and actual disbursements and must credit clients with any reductions or rebates they obtain.

Citation
(1904) 35 SCR 168
Parties
Appellant / Plaintiff: Sophia Knock; Respondents / Solicitors: D. M. Owen & Ruggles; Judgment Debtor / Original Defendant: Joseph Knock
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
8 June 1904
Procedural Posture
Appeal to Supreme Court of Canada / Final Judgment on Appeal From Supreme Court of Nova Scotia
Outcome
Appeal allowed in part: second confession of judgment set aside and first confession reduced by the amount of the overcharge; no costs awarded to either party.
Legal Topics
Confession of Judgment, Solicitor Client Fiduciary Duty, Overcharge of Counsel Fees, Security for Costs, Set Aside/reduction of Judgment, Assignment Under Collection Act 1894, Taxation of Costs, Fraudulent Preference
Source Language
English
Civil Law Equity Property Professional Negligence/fiduciary Duty Costs and Taxation Confession of Judgment Solicitor Client Fiduciary Duty Overcharge of Counsel Fees +5 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 14 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Sophia Knock

Appellant / Plaintiff

D. M. Owen & Ruggles

Respondents / Solicitors

Joseph Knock

Judgment Debtor / Original Defendant

Procedural Posture

Appeal to Supreme Court of Canada / Final Judgment on Appeal From Supreme Court of Nova Scotia

Legal Issues

  1. 1 Whether confessions of judgment taken by solicitors as security for costs are void or reducible where they include amounts for counsel fees not actually paid or where there was an undeclared arrangement between solicitors and counsel
  2. 2 Whether a solicitor may take security for costs before the solicitor-client relationship is terminated and without taxation of costs
  3. 3 Whether the arrangement to divide counsel fees between solicitors and counsel vitiates the judgment as fraudulent and void as against creditors

Ratio Decidendi

The confessions of judgment were not wholly vitiated by the improper arrangement, but the judgments must be reduced by the amount representing the overcharge for counsel fees that were not actually paid to counsel; solicitors may take security for costs already incurred but must charge only reasonable remuneration and actual disbursements and must credit clients with any reductions or rebates they obtain.

Court Disposition

Appeal allowed in part: second confession of judgment set aside and first confession reduced by the amount of the overcharge; no costs awarded to either party.

Orders

  • Set aside the second judgment for $100 obtained by Owen & Ruggles against Joseph Knock.
  • Reduce the first judgment obtained by Owen & Ruggles against Joseph Knock by $80.59 (part of the total overcharge) and apply the overall reduction of $189.50 as detailed in reasons.