McPherson v Legal Services Commission [2008] EWHC 2865 (Ch) (24 November 2008)

McPherson v Legal Services Commission [2008] EWHC 2865 (Ch) (24 November 2008)

The statutory charge under s.16(6) Legal Aid Act 1988 only attaches to the extent that the legally aided person has preserved property of actual value in the proceedings, after accounting for secured debts. If the property had no net value at the relevant time, no property was preserved and the statutory charge does not attach. The Deputy Adjudicator's finding that the value of Woodland Cottage exceeded the mortgage debt at the relevant date stands, so the charge attaches to the net equity preserved.

Citation
[2008] EWHC 2865 (Ch)
Parties
Appellant/respondent: Maureen Linda McPherson; Respondent/applicant: Legal Services Commission
Jurisdiction
England and Wales
Judgment Date
24 November 2008
Procedural Posture
Appeal From Adjudicator to HM Land Registry / Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Statutory Charge, Property Recovered or Preserved, Legal Aid Costs, Land Registry Charges, Estoppel
Property Law Legal Aid Land Registration Statutory Charge Property Recovered or Preserved Legal Aid Costs Land Registry Charges Estoppel

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Parties

Maureen Linda McPherson

Appellant/respondent

Legal Services Commission

Respondent/applicant

Procedural Posture

Appeal From Adjudicator to HM Land Registry / Judgment on Appeal

Legal Issues

  1. 1 Whether Woodland Cottage was 'property recovered or preserved' for the purposes of a statutory charge under s.16(6) Legal Aid Act 1988
  2. 2 Whether the statutory charge attaches where the property has no net value (negative equity) at the relevant time
  3. 3 Whether the Legal Services Commission is estopped from asserting the charge

Ratio Decidendi

The statutory charge under s.16(6) Legal Aid Act 1988 only attaches to the extent that the legally aided person has preserved property of actual value in the proceedings, after accounting for secured debts. If the property had no net value at the relevant time, no property was preserved and the statutory charge does not attach. The Deputy Adjudicator's finding that the value of Woodland Cottage exceeded the mortgage debt at the relevant date stands, so the charge attaches to the net equity preserved.

Court Disposition

Appeal dismissed

Orders

  • The Chief Land Registrar is to give effect to the application of the Legal Services Commission for registration of a statutory charge against Woodland Cottage.