Chtibi & Chtibi

Case [2021] FamCA 176


FAMILY COURT OF AUSTRALIA

Chtibi & Chtibi [2021] FamCA 176

File number(s): PAC 3587 of 2015
Judgment of: FOSTER J
Date of judgment: 8 April 2021
Catchwords: FAMILY LAW – LEGAL PRACTITIONERS – SOLICITOR’S LIEN – where issue of outstanding costs as between the wife and her former legal representative – where wife’s former solicitor attended a two day hearing  when matter was adjourned part-heard – where legal representative seeks to recover his costs – where wife has made professional conduct complaint as to the legal representative – where it is appropriate that an order be made for a lien over certain funds that may be due and payable to the wife under property orders until question of her costs liability resolved.
Legislation:  Family Law Act 1975 (Cth)
Cases cited:

Firth v Centrelink & Anor [2002] NSWSC 564

Marsh & Marsh [2014] FamCA 361

Number of paragraphs: 15
Date of hearing: 16 March 2021
Place: Parramatta
Applicant – self-represented litigant: Ms A Chtibi
Solicitor for the Respondent: The Respondent or his solicitor did not attend
Solicitor for the Intervener: F Lawyers

ORDERS

PAC 3587 of 2015
BETWEEN:

MS A CHTIBI

Applicant

AND:

MR B CHTIBI

Respondent

Mr G

Intervener

ORDER MADE BY:

FOSTER J

DATE OF ORDER:

6 APRIL 2021

THE COURT ORDERS THAT:

1.That the wife be restrained from receiving any payment of money or transfer of property pursuant to any partial or final orders proposed under section 79 of the Family Law Act 1975 (Cth) except as these orders may otherwise provide.

2.That in the event of consent orders being sought by the parties, that the intervener be heard prior to the Court’s determination of any application for consent orders.

3.That if the wife’s application for property is determined on the basis that it includes an order that the husband pay to the wife a sum of money or a sum as to costs the wife shall do all things necessary to deposit such sum or sums up to a total of $25,778.50 to the trust account or such other controlled money account nominated by the intervener prior to any further or other payment being received by her.

4.That pending the determination of the costs dispute as between the wife and the intervener, the intervener shall hold those monies in trust on account for the wife.

5.That in the event that the husband or the wife or both of them file and serve a notice of discontinuance in relation to his, her or their applications before the Court, the intervener have liberty to request that the proceedings be relisted before the Court on short notice.

Note:   The form of the order is subject to the entry in the Court’s records.

Note: This copy of the Court’s Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 17.02A(b) of the Family Law Rules 2004 (Cth)), or to record a variation to the order pursuant to 17.02 Family Law Rules 2004 (Cth).

IT IS…

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Chtibi & Chtibi [2021] FamCA 176
Case
[2021] FamCA 176
Decision Date

CaseChat Overview and Summary

This matter concerned an application by a former legal representative, Mr G, for a solicitor's lien over funds potentially payable to the wife, Ms A Chtibi, in ongoing family law proceedings against her husband, Mr B Chtibi. The dispute arose from outstanding costs owed by the wife to her former solicitor, who had attended a two-day hearing that was adjourned part-heard. The wife had also lodged a professional conduct complaint against her legal representative.

The primary legal issue before the Court was whether it was appropriate to make an order for a lien over certain funds that might become due and payable to the wife under property orders, pending the resolution of the dispute concerning her liability for her former solicitor's costs.

Foster J reasoned that it was appropriate to grant the solicitor's lien to secure the outstanding costs. The Court applied the principles relating to a solicitor's lien, which allows a legal practitioner to retain possession of a client's property or seek a charge over property recovered or preserved for the client to secure payment of costs. The Court considered the wife's professional conduct complaint but determined that the need to secure the legal representative's costs was paramount in the interim.

The Court ordered that the wife be restrained from receiving any payment of money or transfer of property pursuant to any partial or final property orders, except as otherwise provided. It further ordered that if the husband was ordered to pay a sum of money to the wife, or a sum for costs, the wife was to deposit up to $25,778.50 into a controlled money account nominated by the intervener prior to receiving any such payment. The intervener was to hold these monies in trust on account for the wife pending the determination of the costs dispute. The Court also made provisions for the intervener to be heard if consent orders were sought and for the relisting of proceedings if the applications were discontinued.

Orders

Orders of the court

PAC 3587 of 2015

BETWEEN:

MS A CHTIBI

Applicant

AND:

MR B CHTIBI

Respondent

Mr G

Intervener

ORDER MADE BY:

FOSTER J

DATE OF ORDER:

6 APRIL 2021

THE COURT ORDERS THAT:

1. That the wife be restrained from receiving any payment of money or transfer of property pursuant to any partial or final orders proposed under section 79 of the Family Law Act 1975 (Cth) except as these orders may otherwise provide.

2. That in the event of consent orders being sought by the parties, that the intervener be heard prior to the Court’s determination of any application for consent orders.

3. That if the wife’s application for property is determined on the basis that it includes an order that the husband pay to the wife a sum of money or a sum as to costs the wife shall do all things necessary to deposit such sum or sums up to a total of $25,778.50 to the trust account or such other controlled money account nominated by the intervener prior to any further or other payment being received by her.

4. That pending the determination of the costs dispute as between the wife and the intervener, the intervener shall hold those monies in trust on account for the wife.

5. That in the event that the husband or the wife or both of them file and serve a notice of discontinuance in relation to his, her or their applications before the Court, the intervener have liberty to request that the proceedings be relisted before the Court on short notice.

Note: The form of the order is subject to the entry in the Court’s records.

Note: This copy of the Court’s Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 17.02A(b) of the Family Law Rules 2004 (Cth)), or to record a variation to the order pursuant to 17.02 Family Law Rules 2004 (Cth).

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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