Q&As

For the purpose of benefitting from section 73 of the Solicitors Act 1974—ie that a solicitor can obtain a charging order over an interim costs order which takes priority over the client’s liquidator’s right to such sum—does the solicitor have to obtain the charging order before the client goes into liquidation, or can it be obtained after the commencement of the liquidation?

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Produced in partnership with Hannah Drozdz of Gately PLC
Published on LexisPSL on 24/06/2019

The following Restructuring & Insolvency Q&A produced in partnership with Hannah Drozdz of Gately PLC provides comprehensive and up to date legal information covering:

  • For the purpose of benefitting from section 73 of the Solicitors Act 1974—ie that a solicitor can obtain a charging order over an interim costs order which takes priority over the client’s liquidator’s right to such sum—does the solicitor have to obtain the charging order before the client goes into liquidation, or can it be obtained after the commencement of the liquidation?

This response deals with the question whether a solicitor can apply under section 73 of the Solicitors Act 1974 (SA 1974) to obtain a charging order in respect of funds received after the company goes into liquidation.

SA 1974, s 73(1) provides that:

‘any court in which a solicitor has been employed to prosecute or defend any suit, matter or proceeding may at any time:

(a) Declare the solicitor entitled to a charge on any property recovered or preserved through his instrumentality for his taxed costs in relation to that suit, matter or proceeding; and

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