SPv Osus Ltd -v- HSBC Institutional Trust Services (Ireland) Ltd & ors [2018] IESC 44 (31 July 2018)

SPv Osus Ltd -v- HSBC Institutional Trust Services (Ireland) Ltd & ors [2018] IESC 44 (31 July 2018)

The Supreme Court held that any significant change to the law regarding assignment of causes of action or third party funding should be effected by legislation, not judicial decision, to avoid the risks of an unregulated market in litigation. The current common law position prohibiting such assignments is to be maintained unless and until the legislature intervenes.

Citation
[2018] IESC 44
Parties
Plaintiff/appellant: SPV Osus Limited; Defendant/respondent: HSBC Institutional Trust Services (Ireland) Limited; Defendant/respondent: HSBC Security Services (Ireland) Limited; Defendant/respondent: Optimal Investment Services S. A.; Defendant/respondent: Banco Santander S. A.
Jurisdiction
Ireland
Judgment Date
31 July 2018
Procedural Posture
Appeal / Supreme Court Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Assignment of Causes of Action, Third Party Funding, Maintenance and Champerty, Access to Justice
Civil Procedure Commercial Law Assignment of Causes of Action Third Party Funding Maintenance and Champerty Access to Justice

Case Brief

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Parties

SPV Osus Limited

Plaintiff/appellant

HSBC Institutional Trust Services (Ireland) Limited

Defendant/respondent

HSBC Security Services (Ireland) Limited

Defendant/respondent

Optimal Investment Services S. A.

Defendant/respondent

Banco Santander S. A.

Defendant/respondent

Procedural Posture

Appeal / Supreme Court Judgment on Appeal

Legal Issues

  1. 1 Whether the assignment of a cause of action is permissible under Irish law
  2. 2 Whether the law on maintenance and champerty should be reinterpreted to allow third party funding or assignment of causes of action

Ratio Decidendi

The Supreme Court held that any significant change to the law regarding assignment of causes of action or third party funding should be effected by legislation, not judicial decision, to avoid the risks of an unregulated market in litigation. The current common law position prohibiting such assignments is to be maintained unless and until the legislature intervenes.

Court Disposition

Appeal dismissed