High Court hears significant case on the status of a solicitors equitable lien in respect of fees owed by an company in liquidation

In Candey v Crumpler, the High Court has to decide whether an English firm of solicitors which acted for a BVI company which was then placed into liquidation in the BVI can have a charge over sums recovered by the liquidators under section 73 of the Solicitors Act 1974 which charge takes precedence over other expenses. The liquidators argue that the solicitors: have waived any right to rely on the equitable lien by having taken an express charge over the company’s property prior to the liquidation; have waived their right to rely on the equitable line by filing a proof of debt in the liquidation which omitted to mention the equitable lien or section 73; sought not to be allowed to rely on the lien having litigated over the nature of the fixed charge for 2 years without mentioning the lien at all. There is also an issue as to whether the exemption which allowed recovery of success fees between 1^st April 2013 and 6^th April 2016 applied to proceedings brought in England by BVI liquidators. The court heard argument over 4 days last week and has reserved judgment. David Holland QC acts for the liquidators.