STEPHENS LAWYERS LTD v CRIFFEL DEER LIMITED [2023] NZHC 2240

STEPHENS LAWYERS LTD v CRIFFEL DEER LIMITED [2023] NZHC 2240

Section 161(1) does not operate as an absolute stay preventing a court from determining liability-only issues; summary judgment as to liability was appropriate because the defendants had no tenable defence to liability for counsel's fees incurred after 28 April 2022; however the defendants have an arguable defence...

Source-derived case information.

Citation
[2023] NZHC 2240
Parties
Plaintiff: Stephens Lawyers Ltd; First Defendant: Criffel Deer Limited; Second Defendant: Prime Commercial Limited; Third Defendant: Michael Robert Garnham
Court
High Court
Jurisdiction
New Zealand
Judgment Date
18 August 2023
Procedural Posture
Civil Summary Judgment (recovery of Counsel's Fees) / Judgment on Liability (summary Judgment Hearing)
Outcome
Summary judgment entered for plaintiff as to liability for counsel's fees incurred after 28 April 2022; adjournment refused; quantum reserved to Law Society
Legal Topics
Summary Judgment, Stay Under S 161 Lawyers and Conveyancers Act 2006, Costs Revision / Law Society Complaint, Liability of Instructing Solicitor for Counsel's Fees, Adjournment Application
Civil Procedure Legal Profession Costs and Fees Summary Judgment Stay Under S 161 Lawyers and Conveyancers Act 2006 Costs Revision / Law Society Complaint Liability of Instructing Solicitor for Counsel's Fees Adjournment Application

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Parties

Stephens Lawyers Ltd

Plaintiff

Criffel Deer Limited

First Defendant

Prime Commercial Limited

Second Defendant

Michael Robert Garnham

Third Defendant

Procedural Posture

Civil Summary Judgment (recovery of Counsel's Fees) / Judgment on Liability (summary Judgment Hearing)

Legal Issues

  1. 1 Whether s 161(1) Lawyers and Conveyancers Act 2006 operates as a stay preventing summary judgment on liability while a Law Society complaint is unresolved
  2. 2 Whether the plaintiff (Stephens Lawyers Ltd) can recover counsel's fees or must look solely to the third defendant Michael Garnham
  3. 3 Whether the plaintiff can recover fees incurred prior to its retainer on 28–29 April 2022

Ratio Decidendi

Section 161(1) does not operate as an absolute stay preventing a court from determining liability-only issues; summary judgment as to liability was appropriate because the defendants had no tenable defence to liability for counsel's fees incurred after 28 April 2022; however the defendants have an arguable defence in relation to fees rendered before the plaintiff was retained, and quantum (reasonableness) remains for the Law Society to determine.

Court Disposition

Summary judgment entered for plaintiff as to liability for counsel's fees incurred after 28 April 2022; adjournment refused; quantum reserved to Law Society

Orders

  • Judgment for the plaintiff as to liability for counsel's fees rendered after 28 April 2022
  • Proceeding adjourned for a telephone conference with an Associate Judge in three months to review progress of the defendants' complaint to the Law Society