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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> Ring v. Kennedy [1997] IEHC 127; [1999] 3 IR 316 (18th July, 1997) URL: http://www.bailii.org/ie/cases/IEHC/1997/127.html Cite as: [1999] 3 IR 316, [1997] IEHC 127 |
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1. In
these proceedings, the Plaintiffs seek an Order directing the Defendant, their
former solicitor, to deliver to them all title deeds, correspondence and
attendances in his possession relative to the premises known as No. 8 Nicholas
Church Lane, otherwise Nicholas Church Place, Cork ("the Premises"). The
Defendant contends that he is entitled to withhold the said documents on foot
of his common law retaining lien.
2. In
1986, the Plaintiffs and a number of private limited companies, in which the
Plaintiffs owned the entire equity or a majority stake in the equity, retained
the Defendant as their solicitor and, in connection with that retainer, files
and documents belonging to the Plaintiffs and to the companies were transferred
by the Plaintiffs' and the companies' former solicitors to the Defendant.
Amongst documents transferred were the title deeds to the Premises. It is not
in issue that the Premises are owned by the Plaintiffs in their personal
capacities and, accordingly, that the title deeds belong to the Plaintiffs in
their personal capacities.
3. The
Plaintiffs and the companies terminated the Defendant's retainer on 4th July,
1989. It is not in dispute that at that stage costs were due to the Defendant
by the Plaintiffs and also by the companies. The Defendant retained Messrs.
Cyril O'Neill & Company, Legal Cost Accountants, to prepare bills of costs.
This was done and the aggregate amount claimed as due to the Defendant on six
bills of costs as drawn by Messrs. Cyril O'Neill & Company was
£34,116.50. The Plaintiffs and the companies retained Messrs. Behan
Fitzpatrick, Legal Cost Accountants, to examine the six bills. There followed
discussions between the two firms of costs accountants which resulted in
agreement as to deductions to be made from the bills. The outcome of these
discussions was summarised in a letter dated 7th June, 1990 from Messrs. Cyril
O'Neill & Company to the Defendant, in which there was set out the amount
which both firms were prepared to recommend to their respective principals on
each of the six individual bills for solicitor and own client costs. One of
the bills related to the Plaintiffs and the amount agreed for recommendation in
respect of that bill was £1,492.42. Of the other five bills, one related
to two companies, Enmare Limited and Kaylon Limited, another two related to
Kaylon Limited and the other remaining two related to Ringsun Blinds Limited
and Security Shutters Limited respectively. The aggregate amount agreed for
recommendation in respect of the six bills was £29,710.82 which, it was
stated in the letters, after giving credit for a payment on account of
£2,200.00 paid to the Defendant, would leave a balance of £27,510.82
due to the Defendant on foot of the six bills. The principals accepted the
recommendations and the amount of the costs properly chargeable by the
Defendant on each bill is agreed. However, the global balance due by the
Plaintiffs and the companies to the Defendant as stated in the letter of 7th
June, 1990 has been disputed by the Plaintiffs and the companies who contend
that they are entitled to further credit.
4. The
Defendant's position is that he is entitled to retain the title deeds to the
Premises until the full amount of £27,510,82 in respect of all six bills
has been paid. The Plaintiffs, by a Demand Draft drawn on AIB Bank dated 1st
August, 1996, tendered payment of the sum of £2,089.38 to the Defendant in
respect of their personal liability, comprising the sum of £1,492.42
together with a sum of £596.96 in respect of interest claimed by the
Defendant, which was expressed to be tendered strictly without prejudice to the
Plaintiffs' right to dispute the claim for interest. The Demand Draft has been
retained by the Defendant but, apparently, not negotiated.
5. The
Defendant's contention is that he has a general lien on the title deeds to the
Premises, the property of the Plaintiffs, not only in respect of costs due by
the Plaintiffs, but also in respect of the costs due by Enmare Limited, Kaylon
Limited, Ringsun Blinds Limited and Security Shutters Limited. The basis of
the Defendant's contention, as I understand it, is that the Plaintiffs and the
companies entered into a composite settlement with the Defendant in the early
summer of 1990 to pay the balance of £27,510.82 to the Defendant and that
this composite settlement is not severable. It is contended that subsequent
dealings by the Defendant with the Plaintiffs and the companies through their
current solicitors, Messrs. Maurice Leahy & Company, and in particular
various offers made by that firm on behalf of their clients on 4th December,
1990, on 25th August, 1993 and on 19th January, 1996 evidence and confirm this.
6. The
nature and extent of a solicitor's retaining lien is well settled. At common
law, he has a right to retain property already in his possession until he is
paid costs due to him in his professional capacity by his client against whom
the lien is claimed. The retaining lien is general in the sense that it
extends to all costs due to the solicitor from the client, whether or not the
property was acquired in connection with the matter for which the costs were
incurred. This point is illustrated by the authority relied on by Mr. Bradley
on behalf of the Defendant -
Carroll
-v- Fleming
57 I.L.T.R. 75. However, the retaining lien extends only to costs incurred by
the client against whom it is claimed and this is illustrated by the authority
relied on by Mr. Hussey for the Plaintiffs -
Turner
-v- Deane
[1849] 6 Dow & L 669. In that case, it was held that an attorney with whom
title deeds, the property of a member of a firm, had been deposited by that
member in the course of professional business done on his private account, had
no lien on them for a debt due from the partnership. By analogy, the Defendant
has no lien on the title deeds to the Premises for costs due by the companies
to the Defendant, irrespective of the fact that the companies are wholly owned
or controlled by the Plaintiffs.
7. As
a matter of law, the extent of the Defendant's general lien on the title deeds
to the Premises had crystallised on the termination of the Defendant's retainer
in July 1989 and, in my view, nothing which occurred after that date could have
varied the extent of the Defendant's general lien. I think it is important to
emphasise that the Defendant's refusal to return the title deeds to the
Premises is justified solely in reliance on his general lien at common law.
8. Accordingly,
in my view, the Defendant, having received and retained the Demand Draft dated
1st August, 1996 which covers the agreed amount due for costs by the Plaintiffs
to the Defendant, the Plaintiffs are entitled to the return of the title deeds
to the Premises. Accordingly, I will make an Order directing the Defendant to
deliver all title deeds, correspondence and attendances relevant to the
Premises in his possession to the Plaintiffs through their solicitors, Maurice
Leahy & Company, not later than 5 p.m. on 25th July, 1997. The Defendant
is free to and can negotiate the Demand Draft at any time. I express no view
as to whether the Defendant is entitled to the sum of £596.96 included in
the draft in respect of interest.