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Tonstate Group Ltd & ors (respondents) v Candey Limited (appellant)

Tuesday 10 May 2022

Candey appeals the Orders of Zacaroli J (dated 30 April 2021 and 28 July 2021).

By Order dated 30 April 2021, Zacaroli J declared that (1) Candey has no entitlement to any payment from Mr Wojakovski pursuant to the Damages Based Agreement (`DBA’) dated 20 September 2019 and (2) Candey has no equitable interest in Mr Wojakovki’s shares in the First Claimant nor any other basis to seek a charging order under s.73 of the Solicitors Act 1974 and (3) ordered that Candey’s s.73 Application is dismissed.

By Order dated 28 July 2021, Zacaroli J recorded that the Claimant’s rights under the final charging order had priority over the lien asserted by Candey.  Zacaroli J also ordered Candey to pay costs.

Factual Background: The issues before Zacaroli J arose in the context of long-running proceedings involving the Tonstate group of companies and Mr Edward Wojakovski. Three applications were made my Candey (1) the `Section 73 Application’ is an application by Candey, solicitors for Mr Wojakovski, for the grant of a legal charge under section 73 Solicitors Act 1973 over 22,500 ordinary shares (the `Shares’) in Tonstate Group Limited (`TGL’). Candey’s application under section 73 was based on its claim to an equitable charge over the Shares as security for fees said to be due from Mr Wojakovski pursuant to a DBA entered into between Candey and Mr Wojakovski on 20 September 2019. Candey contends that the Shares represent assets recovered and/or preserved for Mr Wojakovski as a consequence of its work representing Mr Wojakovski in those proceedings. There was a cross application by Tonstate for a declaration that the DBA is unenforceable. The second application was an application by TGL and others for disclosure of information and documents relating to the funding of solicitors acting for Mr Wojakovski in other proceedings. The third application was for the transfer of legal title of certain properties whose beneficial title is vested in TGL or another company in the Tonstate group. ( There are two judgments the DBA Judgment ( [2021] EWHC 1122) and the Lien Judgment ([2021] EWHC 1826).

View hearing:

Part 1

Part 2