Clifford Harris & Co v Solland International Ltd. & Ors [2004] EWHC 2488 (Ch) (03 November 2004)

Clifford Harris & Co v Solland International Ltd. & Ors [2004] EWHC 2488 (Ch) (03 November 2004)

It is at least seriously arguable that the grant of a legal charge over an unrelated asset (the client's house) did not constitute a waiver of the solicitor's right to apply for a statutory charge under section 73 of the Solicitors Act 1974 on the settlement sum, as the legal charge did not confer any new right to interest and was not inconsistent with the statutory right. Therefore, summary dismissal of the claim is not appropriate, and the injunction should be continued.

Citation
[2004] EWHC 2488 (Ch)
Parties
Claimant: Clifford Harris & Co; Defendants: Solland International Ltd & Ors
Jurisdiction
England and Wales
Judgment Date
03 November 2004
Procedural Posture
Part 8 Claim Under CPR / Interim Applications: Continuation of Injunction and Summary Dismissal
Outcome
Defendants' application for summary dismissal refused; injunction continued
Legal Topics
Solicitors' Lien, Charging Order Under Solicitors Act 1974 S.73, Waiver of Lien by Taking Security, Interim Injunctions, Non Disclosure on Without Notice Applications
Civil Procedure Solicitors' Costs Equity Solicitors' Lien Charging Order Under Solicitors Act 1974 S.73 Waiver of Lien by Taking Security Interim Injunctions Non Disclosure on Without Notice Applications

Case Brief

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Parties

Clifford Harris & Co

Claimant

Solland International Ltd & Ors

Defendants

Procedural Posture

Part 8 Claim Under CPR / Interim Applications: Continuation of Injunction and Summary Dismissal

Legal Issues

  1. 1 Whether the grant of a legal charge by the client to the solicitor constitutes a waiver of the solicitor's right to a statutory charge under section 73 of the Solicitors Act 1974 on property recovered in litigation
  2. 2 Whether Clifford Harris & Co has a seriously arguable case for a charge on the settlement sum
  3. 3 Whether non-disclosure on the without notice application justifies discharge of the injunction

Ratio Decidendi

It is at least seriously arguable that the grant of a legal charge over an unrelated asset (the client's house) did not constitute a waiver of the solicitor's right to apply for a statutory charge under section 73 of the Solicitors Act 1974 on the settlement sum, as the legal charge did not confer any new right to interest and was not inconsistent with the statutory right. Therefore, summary dismissal of the claim is not appropriate, and the injunction should be continued.

Court Disposition

Defendants' application for summary dismissal refused; injunction continued

Orders

  • Continuation of the injunction restraining the defendants from dealing with the settlement sum until judgment in the Part 8 claim or further order
  • Directions to be given for bringing the claim to a final hearing