Recoverability of chargee’s costs of sale and enforcement (Brierley v Otuo)
Dispute Resolution: The High Court has refused an appeal by a charge-holder in long-running litigation with the result that the costs of sale and enforcement were not recoverable. The claimant had secured a number of final charging orders and orders for sale over the Defendant’s interest in two properties. The parties later entered into a pre-sale consent order in 2020 whereby a part-payment was made in relation to sums owed on both properties, and agreement was reached to remove all charges on one property. The court later held in April 2022 that the part-payment had the effect of discharging the charging orders in place. In July 2023, the Master discharged the final charging orders over the second property, staying orders for possession and sale and held that the claimant could not recover the costs of sale and enforcement. On appeal, the court declined to imply a term into the lower court’s order that the discharge was subject to payment of outstanding costs of sale which had not been otherwise provided for in previous orders or by agreement. Written by Pépin Aslett, barrister and head of the Business and Property Team, St John’s Buildings, Lucas Gregory, pupil barrister, St John’s Buildings.