Can a law practice exercise a general retaining lien over trust money received for a specific purpose?

Yes, provided the purpose for which the money was entrusted has been satisfied and the person on whose behalf the money is held has no objection to the solicitor exercising a general retaining lien over the money.

Section 258 of the Legal Profession Act 2007 provides that a law practice can exercise a general retaining lien over trust monery to the extent of the amount of legal costs reasonably due and owing to the law practice by the person on whose behalf the trust money is held.

This must, however, be read in conjunction with the common law principle that money received by a trustee for a specific purpose can only be used for that purpose unless the person entitled to the money give his/her consent to the use of the money for another purpose.