Candey Ltd v Crumpler and another (as Joint Liquidators of Peak Hotels and Resorts Ltd (In Liquidation))

Candey Ltd v Crumpler and another (as Joint Liquidators of Peak Hotels and Resorts Ltd (In Liquidation))

Candey Ltd waived its equitable lien by entering into the Fixed Fee Agreement and Deed of Charge, which together created new security over the same property as the lien and altered priority, without expressly reserving the lien. The objective intention, assessed from all circumstances, was that the new arrangements replaced the lien.

Parties
Appellant: Candey Ltd; Respondents: Crumpler and another (as Joint Liquidators of Peak Hotels and Resorts Ltd (In Liquidation))
Jurisdiction
England and Wales
Judgment Date
21 December 2022
Procedural Posture
Civil Appeal / Supreme Court Judgment
Outcome
Appeal dismissed
Legal Topics
Solicitor's Equitable Lien, Waiver of Lien, Security for Legal Fees, Priority of Claims in Liquidation, Section 73 Solicitors Act 1974
Insolvency Law Equity Legal Profession Solicitor's Equitable Lien Waiver of Lien Security for Legal Fees Priority of Claims in Liquidation Section 73 Solicitors Act 1974

Case Brief

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Parties

Candey Ltd

Appellant

Crumpler and another (as Joint Liquidators of Peak Hotels and Resorts Ltd (In Liquidation))

Respondents

Procedural Posture

Civil Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether Candey Ltd waived its equitable lien by accepting additional security (Deed of Charge) when renegotiating its retainer with PHRL in October 2015
  2. 2 Whether failure to mention the lien in the proof of debt amounted to post-liquidation waiver
  3. 3 Whether the assertion of the lien was an abuse of process

Ratio Decidendi

Candey Ltd waived its equitable lien by entering into the Fixed Fee Agreement and Deed of Charge, which together created new security over the same property as the lien and altered priority, without expressly reserving the lien. The objective intention, assessed from all circumstances, was that the new arrangements replaced the lien.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.