By Barbara E. Cotton

The remedy of an equitable lien is of historic origin, stemming from the Courts of Chancery in the early 1800s. For much of this century the remedy has been applied on an infrequent basis and primarily to enforce unpaid vendors’ liens.

The remedy seems to have been given new life, however, as it has been considered within a modern commercial context in two fairly recent decisions. In 1982 the English Court of Appeal considered the nature of an equitable lien at some length in Swiss Bank Corp v. Lloyds Bank Ltd., a decision subsequently upheld by the House of Lords. The New Zealand Court of Appeal has also considered the nature of an equitable lien within a commercial context in the 1974 case of Waitomo Wools (N.Z.) Ltd. v. Nelson (N.Z.) Ltd.

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