Knox D'arcy Operations Ltd & Anor v Manches LLP [2013] EWCA Civ 33 (07 February 2013)

Knox D'arcy Operations Ltd & Anor v Manches LLP [2013] EWCA Civ 33 (07 February 2013)

The Court of Appeal held that Manches LLP, through its partner Mr Zietman, received actual notice prior to receipt of the funds that the proceeds of the Oxus Gold litigation were assigned to Knox D'Arcy companies and not Templeton. This sufficed to bind Manches to the equitable assignment, preventing them from exercising a lien or contractual right over the funds for Templeton's debts. The trial judge's findings of fact on notice were not perverse and could not be disturbed. The costs order was within the judge's discretion and not obviously wrong.

Citation
[2013] EWCA Civ 33
Parties
Claimant/respondent: Knox D'Arcy Operations Limited; Claimant/respondent: Knox D'Arcy Investments Limited; Defendant/appellant: Manches LLP
Jurisdiction
England and Wales
Judgment Date
07 February 2013
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed; permission to appeal on additional grounds refused.
Legal Topics
Notice of Assignment, Solicitor's Lien, Client Account Funds, Equitable Assignment, Costs Orders
Equity Commercial Law Solicitors' Liens Notice of Assignment Solicitor's Lien Client Account Funds Equitable Assignment Costs Orders

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Parties

Knox D'Arcy Operations Limited

Claimant/respondent

Knox D'Arcy Investments Limited

Claimant/respondent

Manches LLP

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether Manches LLP had actual notice of the assignment of litigation proceeds prior to receipt of funds
  2. 2 Whether Manches LLP was entitled to use client account funds to settle fees owed by Templeton Insurance Limited
  3. 3 Whether the costs order made by the trial judge was appropriate

Ratio Decidendi

The Court of Appeal held that Manches LLP, through its partner Mr Zietman, received actual notice prior to receipt of the funds that the proceeds of the Oxus Gold litigation were assigned to Knox D'Arcy companies and not Templeton. This sufficed to bind Manches to the equitable assignment, preventing them from exercising a lien or contractual right over the funds for Templeton's debts. The trial judge's findings of fact on notice were not perverse and could not be disturbed. The costs order was within the judge's discretion and not obviously wrong.

Court Disposition

Appeal dismissed; permission to appeal on additional grounds refused.

Orders

  • Declaration that Manches LLP liable to pay claimants £246,151.39 including interest
  • Order for £242,509.28 paid into court to be paid out to claimants in partial satisfaction