Mythen Construction Ltd v Allianz PLC (Unapproved) [2020] IECA 148 (08 June 2020)

Mythen Construction Ltd v Allianz PLC (Unapproved) [2020] IECA 148 (08 June 2020)

The High Court erred by refusing discovery on the basis of its view of the likely outcome of the substantive legal issues. The proper approach is to grant discovery if the documents are relevant to an issue arising on the pleadings. Mythen's pleaded claim under Section 62 raises a live issue as to Allianz's entitlement to refuse indemnity, making the requested discovery both relevant and necessary. The substantive legal merits of Section 62 and the arbitration clause are for trial, not for determination on a discovery application.

Citation
[2020] IECA 148
Parties
Plaintiff/appellant: Mythen Construction Limited; Defendant/respondent: Allianz Public Limited Company
Jurisdiction
Ireland
Judgment Date
08 June 2020
Procedural Posture
Appeal / Appeal Against High Court Refusal of Discovery
Outcome
Appeal allowed
Legal Topics
Discovery, Section 62 Civil Liability Act 1961, Privity of Contract, Arbitration Clauses, Third Party Rights Against Insurers
Civil Procedure Insurance Law Discovery Section 62 Civil Liability Act 1961 Privity of Contract Arbitration Clauses Third Party Rights Against Insurers

Case Brief

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Parties

Mythen Construction Limited

Plaintiff/appellant

Allianz Public Limited Company

Defendant/respondent

Procedural Posture

Appeal / Appeal Against High Court Refusal of Discovery

Legal Issues

  1. 1 Whether the High Court erred in refusing discovery of documents relating to insurer's refusal to indemnify under Section 62 of the Civil Liability Act 1961
  2. 2 Whether Section 62 creates a statutory exception to privity of contract allowing a third party to challenge insurer's declinature
  3. 3 Whether the arbitration clause in the insurance policy precludes the plaintiff's claim

Ratio Decidendi

The High Court erred by refusing discovery on the basis of its view of the likely outcome of the substantive legal issues. The proper approach is to grant discovery if the documents are relevant to an issue arising on the pleadings. Mythen's pleaded claim under Section 62 raises a live issue as to Allianz's entitlement to refuse indemnity, making the requested discovery both relevant and necessary. The substantive legal merits of Section 62 and the arbitration clause are for trial, not for determination on a discovery application.

Court Disposition

Appeal allowed

Orders

  • Order directing Allianz to make discovery on oath of all documentation and communications (including electronic communications and recordings) between Allianz and Bidcon Construction Limited and/or its legal advisors and/or the liquidator of that company and/or the liquidator’s legal advisers in relation to...
  • Order setting aside the High Court order for costs in favour of Allianz.