Candey Ltd v Crumpler & Anor (Liquidators of Peak Hotels & Resorts Ltd)

Candey Ltd v Crumpler & Anor (Liquidators of Peak Hotels & Resorts Ltd)

Candey waived its solicitor's lien by entering into the Deed of Charge at the time of the Fixed Fee Agreement without any express or implied reservation, and thus had no lien at the commencement of liquidation. The Liquidators' Application did not constitute proceedings within Article 4(c) of the LASPO Order, as the recognition under the CBIR did not convert the BVI liquidation into an English liquidation under Parts IV or V of the Insolvency Act 1986. Accordingly, Candey was not entitled to recover a success fee under the CFA, nor to a charge under section 73 of the Solicitors Act 1974.

Parties
Applicant/respondent: Candey Limited; Respondents/applicants: Russell Crumpler and Christopher Farmer (as Joint Liquidators of Peak Hotels & Resorts Limited (in liquidation))
Jurisdiction
England and Wales
Judgment Date
15 February 2019
Procedural Posture
Insolvency/companies List (ch D) / Judgment on Applications: Exemption Issue and Lien Application
Outcome
Applications dismissed; judgment for the Liquidators.
Legal Topics
Solicitor's Lien, Waiver of Security, Cross Border Insolvency, Conditional Fee Agreements, Priority of Claims in Liquidation
Insolvency Law Company Law Legal Profession Solicitor's Lien Waiver of Security Cross Border Insolvency Conditional Fee Agreements Priority of Claims in Liquidation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 30 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Candey Limited

Applicant/respondent

Russell Crumpler and Christopher Farmer (as Joint Liquidators of Peak Hotels & Resorts Limited (in liquidation))

Respondents/applicants

Procedural Posture

Insolvency/companies List (ch D) / Judgment on Applications: Exemption Issue and Lien Application

Legal Issues

  1. 1 Whether the Liquidators' Application constitutes 'proceedings' within Article 4(c) of the LASPO Order for purposes of CFA success fee recovery
  2. 2 Whether Candey waived its solicitor's lien by entering into the Deed of Charge and/or by subsequent conduct
  3. 3 Whether Candey is entitled to a charge under section 73 of the Solicitors Act 1974 over the Settlement Proceeds and SCB Monies

Ratio Decidendi

Candey waived its solicitor's lien by entering into the Deed of Charge at the time of the Fixed Fee Agreement without any express or implied reservation, and thus had no lien at the commencement of liquidation. The Liquidators' Application did not constitute proceedings within Article 4(c) of the LASPO Order, as the recognition under the CBIR did not convert the BVI liquidation into an English liquidation under Parts IV or V of the Insolvency Act 1986. Accordingly, Candey was not entitled to recover a success fee under the CFA, nor to a charge under section 73 of the Solicitors Act 1974.

Court Disposition

Applications dismissed; judgment for the Liquidators.

Orders

  • Exemption Issue decided in favour of the Liquidators; Candey not entitled to recover a CFA success fee.
  • Lien Application dismissed; Candey not entitled to a charge under section 73 of the Solicitors Act 1974.