On a motion by judgment creditors for directions regarding monies paid into court pursuant to prior costs orders, the moving parties sought payment of the funds to their solicitors on the basis of a solicitor’s lien.
The responding party opposed payment and asserted a claim for equitable set‑off based on earlier default judgments obtained in unrelated actions against different parties.
The court held that equitable set‑off requires a sufficient connection between the debts and generally mutuality between the parties.
Because the judgments relied upon involved different parties and separate proceedings, and no evidence justified piercing the corporate veil to establish mutuality, the claim for equitable set‑off failed.
The court ordered the monies paid out of court to the moving parties’ solicitors.