Mastercigars Direct Ltd v Withers LLP

Mastercigars Direct Ltd v Withers LLP

The court refused to release funds from the section 73 charge because Withers' security for their fees was already inadequate and releasing the funds would further diminish their security. The court also refused to lift the stay on enforcement of interim costs certificates because the sums due between the parties remained highly uncertain and disputed, and it would not be just to allow enforcement in these circumstances.

Parties
Claimant: Mastercigars Direct Limited; Defendant: Withers LLP
Jurisdiction
England and Wales
Judgment Date
10 June 2009
Procedural Posture
Civil Appeal (costs) / Ruling on Applications to Release Funds From Charge and to Lift Stay on Enforcement
Outcome
Both applications dismissed
Legal Topics
Solicitors' Charges, Charging Orders, Security for Costs, Enforcement of Costs Orders
Civil Procedure Costs Solicitors' Charges Charging Orders Security for Costs Enforcement of Costs Orders

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Parties

Mastercigars Direct Limited

Claimant

Withers LLP

Defendant

Procedural Posture

Civil Appeal (costs) / Ruling on Applications to Release Funds From Charge and to Lift Stay on Enforcement

Legal Issues

  1. 1 Whether to release funds from a section 73 Solicitors Act 1974 charge to Mastercigars for legal expenses
  2. 2 Whether to lift a stay on enforcement of interim costs certificates in favour of Withers

Ratio Decidendi

The court refused to release funds from the section 73 charge because Withers' security for their fees was already inadequate and releasing the funds would further diminish their security. The court also refused to lift the stay on enforcement of interim costs certificates because the sums due between the parties remained highly uncertain and disputed, and it would not be just to allow enforcement in these circumstances.

Court Disposition

Both applications dismissed

Orders

  • Application by Mastercigars for release of funds from the charge dismissed
  • Application by Withers to lift stay on enforcement dismissed