L – Lien
15/5/20
SHEIANOV v SARNER INTERNATIONAL LTD [2020] EWHC 1214 (QB)
Reviews case law on liens and concludes [80] that a particular lien (the right to retain property on which work has been done) can only operate on physical chattels, not ideas or intellectual property. Work must be done "on" the chattel being detained and not merely "with" it or "using" it or "in relation to" it. The work must improve or give additional value to the chattel. The improvement need not be physical, but it must be inherent to the chattel itself. If the agreed work is of a hybrid nature, some of which is apt to create a particular lien and some of which is not, and the work cannot be severed into those two constituent parts, no particular lien is created.
14/3/14
YOUR RESPONSE LTD v DATATEAM BUSINESS MEDIA LTD [2014] EWCA Civ 281
A service provider could not exercise a common law lien over the electronic database it had managed for the defendant. It is not possible to exercise a common law lien over intangible property.
2/11/12
RE LEHMAN BROTHERS INTERNATIONAL (EUROPE) (IN ADMINISTRATION) [2012] EWHC 2997 (Ch)
An agreement which conferred a “general lien” on company property comprising money and de-materialised securities, and a right to realise the property in satisfaction of liabilities and obligations in the event of default, did not create a lien in the strict sense because a lien can only apply to tangible property. Its effect was to create a floating charge. The charge did not fall within the Financial Collateral Arrangements (No 2) Regs 2003, because it was created before the Regs were implemented and the collateral-taker did not have sufficient possession or control of the charged property.
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