Jackson Smith v Richards

Jackson Smith commenced proceedings against Richards, seeking to enforce a charge over Richards' property to secure the costs of Smith's litigation. The matter was before the court to determine whether the charge was enforceable given that Smith had failed to make a disclosure required by section 175 of the Legal Profession Act 1987. The court considered the appropriate procedure for dealing with the matter, given that the issue of the charge's enforceability was intertwined with the issue of costs, which had not yet been finally determined.

The court had to decide whether the charge over Richards' property was enforceable in light of Smith's failure to comply with the disclosure requirement. The court also had to determine whether the matter should be decided at the interlocutory stage or if it was more appropriate to wait until the costs were finally determined. This required the court to consider the potential consequences of enforcing the charge and the implications of not enforcing it, as well as the impact on the final determination of costs.

The court held that the issue of whether the charge was enforceable was inextricably linked to the issue of costs, which had not yet been finally determined. The court noted that it would not be appropriate to make a final determination on the enforceability of the charge at this interlocutory stage. Instead, the court found that it would be more appropriate to wait until the costs were finally determined before deciding the issue of the charge's enforceability. The court emphasised that the issue of costs was a matter of substance, and that it was not convenient to decide the issue of the charge's enforceability without first determining the costs.

The court dismissed the application for an order enforcing the charge. The court ordered that the matter be stayed until the costs were finally determined, at which point the issue of the charge's enforceability could be reconsidered. The court also noted that the parties would be at liberty to make further applications in light of any final determination of costs.