Quinn & Ors -v- Irish Bank Resolutions Corporation Ltd & Anor [2016] IECA 21 (29 January 2016)

Quinn & Ors -v- Irish Bank Resolutions Corporation Ltd & Anor [2016] IECA 21 (29 January 2016)

The plaintiffs' application to amend their statement of claim to introduce a new plea of 'stand alone' unenforceability was refused because it was not necessary to determine the real issues between the parties, was not previously pleaded or in controversy, and was sought only after an adverse Supreme Court decision. The delay was culpable and inadequately explained. Allowing the amendment would constitute an abuse of process under the Henderson v. Henderson rule, undermine the purpose and outcome of the preliminary issue, and cause general prejudice to the defendants. The High Court was correct to refuse the amendment and to strike out certain paragraphs of the statement of claim as...

Citation
[2016] IECA 21
Parties
Plaintiffs/appellants (289/2015), Plaintiffs/respondents (324/2015): Ciara Quinn, Colette Quinn, Brenda Quinn, Aoife Quinn, Seán Quinn Junior & Patricia Quinn; Defendants/respondents (289/2015), Defendants/appellants (324/2015): Irish Bank Resolution Corporation Limited (In Special Liquidation) and Kieran Wallace; Third Parties: Sean Quinn Senior, Dara O’Reilly and Liam McCaffrey
Jurisdiction
Ireland
Judgment Date
29 January 2016
Procedural Posture
Appeal / Judgment on Two Related Appeals From High Court Orders Regarding Amendment of Pleadings and Striking Out of Paragraphs
Outcome
Appeals dismissed
Legal Topics
Amendment of Pleadings, Abuse of Process, Illegality in Contracts, Market Abuse Regulations, Section 60 Companies Act 1963, Preliminary Issues, Res Judicata, Henderson V. Henderson Rule
Civil Procedure Banking Law Company Law Amendment of Pleadings Abuse of Process Illegality in Contracts Market Abuse Regulations Section 60 Companies Act 1963 +3 more

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Parties

Ciara Quinn, Colette Quinn, Brenda Quinn, Aoife Quinn, Seán Quinn Junior & Patricia Quinn

Plaintiffs/appellants (289/2015), Plaintiffs/respondents (324/2015)

Irish Bank Resolution Corporation Limited (In Special Liquidation) and Kieran Wallace

Defendants/respondents (289/2015), Defendants/appellants (324/2015)

Sean Quinn Senior, Dara O’Reilly and Liam McCaffrey

Third Parties

Procedural Posture

Appeal / Judgment on Two Related Appeals From High Court Orders Regarding Amendment of Pleadings and Striking Out of Paragraphs

Legal Issues

  1. 1 Whether plaintiffs should be permitted to amend their statement of claim to plead 'stand alone' unenforceability of securities after Supreme Court decision
  2. 2 Whether certain paragraphs of the statement of claim should be struck out as precluded by prior Supreme Court decision

Ratio Decidendi

The plaintiffs' application to amend their statement of claim to introduce a new plea of 'stand alone' unenforceability was refused because it was not necessary to determine the real issues between the parties, was not previously pleaded or in controversy, and was sought only after an adverse Supreme Court decision. The delay was culpable and inadequately explained. Allowing the amendment would constitute an abuse of process under the Henderson v. Henderson rule, undermine the purpose and outcome of the preliminary issue, and cause general prejudice to the defendants. The High Court was correct to refuse the amendment and to strike out certain paragraphs of the statement of claim as...

Court Disposition

Appeals dismissed

Orders

  • Refusal to permit amendment of statement of claim affirmed
  • Refusal to strike out certain paragraphs of statement of claim affirmed in part; some paragraphs struck out as ordered by High Court