Home > Cases > Candey v Crumpler [2020] EWCA Civ 26

The Court of Appeal ruled on whether a claim against Joint Liquidators of a foreign company fell within the LASPO exemption such as to allow the recovery of a success fee under a CFA; whether a solicitors lien under section 73 of the Solicitors Act 1974 had been waived by the taking of additional security. In upholding the trial Judge the Court held that the LASPO exemption did not apply to liquidators of foreign companies being would up abroad as they were not “acting in the capacity of” liquidators of a company being would up under the Insolvency Act. The Court also ruled that the solicitor lien had been waived by the solicitors entering into an agreement with the client which: provided for the payment of interest which had not previously been payable; gave a security with a different priority ranking in the event of liquidation. They held that additionally the lien had been waived post-liquidation by a failure by the solicitors to rely on it in their proof of debt. In doing this the Court provided important guidance on the basis on which a solicitor can waive its equitable lien.

The judgment can be found here.

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