Read the full judgment text of CACV 000156/1980 on BabelCite. This Court of Appeal judgment was delivered on 5 December 1980 before Huggins JA, Cons JA, Penlington J.
Garnishee proceedings – solicitor's possessory lien – whether ordered to pay whole sum into court destroys lien – costs of garnishee application – M.K. Lam & Co. (a firm) formerly acted for a judgment debtor and received various sums with instructions to pay third-party creditors – garnishees paid some amounts and prepared a bill of costs of $35,000 with $5,000 credited, leaving claimed lien of $30,000 over client moneys – in garnishee proceedings brought by judgment creditor Hong Kong Telephone Co. Ltd., Mr Registrar Chism declared the lien established for $30,000 but ordered the garnishees to pay the whole sum held, including the lien amount, into court and reserved costs – whether an order requiring solicitor garnishees to pay the whole sum into court deprives them of their possessory lien because they have parted with possession – held, no – appeal allowed – the Registrar's order had inadvertently and improperly deprived the garnishees of their lien and the order sought by the Notice of Appeal was made – concern to protect a potential trustee in bankruptcy did not justify overriding the established lien – whether the garnishees/appellants and other parties should have their costs taxed and deductible from moneys in court – held, the appellants are entitled to their costs but the other parties should not receive their costs at this stage, and the Registrar's reservation of the other parties' costs stands – Commissioner of Inland Revenue and judgment creditor not represented at the appeal hearing – judgment dated 5 December 1980 (Huggins JA, Cons JA, Penlington J).
Legal issues: Effect of payment-into-court order on solicitor garnishee's possessory lien · Costs of the garnishee application before the Registrar
Outcome: Appeal allowed; the Registrar's order set aside and the order sought by the Notice of Appeal made.