Persona Digital Telephony Ltd & Sigma Wireless Networks Ltd and The Minister for Public Enterprise, Ireland and the Attorney General, and, by order, Denis O'Brien and Michael Lowry [2017] IESC 27 (23 May 2017)

Persona Digital Telephony Ltd & Sigma Wireless Networks Ltd and The Minister for Public Enterprise, Ireland and the Attorney General, and, by order, Denis O'Brien and Michael Lowry [2017] IESC 27 (23 May 2017)

Professional third party funding of litigation by an entity with no independent or bona fide interest in the proceedings, in return for a share of the proceeds, is contrary to Irish law as it constitutes champerty, which remains both a tort and a criminal offence. The funding agreement at issue is void for illegality, and only the legislature can alter this position.

Citation
[2017] IESC 27
Parties
Plaintiff/appellant: Persona Digital Telephony Ltd.; Plaintiff/appellant: Sigma Wireless Networks Ltd.; Defendant/respondent: The Minister for Public Enterprise; Defendant/respondent: Ireland; Defendant/respondent: The Attorney General; Defendant/respondent: Denis O’Brien; Third Party: Michael Lowry
Jurisdiction
Ireland
Judgment Date
23 May 2017
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Maintenance and Champerty, Third Party Litigation Funding, Access to Justice, Public Policy, Illegality of Contracts
Civil Procedure Contract Law Tort Law Criminal Law Maintenance and Champerty Third Party Litigation Funding Access to Justice Public Policy +1 more

Case Brief

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Parties

Persona Digital Telephony Ltd.

Plaintiff/appellant

Sigma Wireless Networks Ltd.

Plaintiff/appellant

The Minister for Public Enterprise

Defendant/respondent

Ireland

Defendant/respondent

The Attorney General

Defendant/respondent

Denis O’Brien

Defendant/respondent

Michael Lowry

Third Party

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court

Legal Issues

  1. 1 Whether third party professional litigation funding is unlawful in Ireland by reason of the torts and offences of maintenance and champerty
  2. 2 Whether the funding agreement between the plaintiffs and Harbour Fund III, LP is void for illegality under Irish law

Ratio Decidendi

Professional third party funding of litigation by an entity with no independent or bona fide interest in the proceedings, in return for a share of the proceeds, is contrary to Irish law as it constitutes champerty, which remains both a tort and a criminal offence. The funding agreement at issue is void for illegality, and only the legislature can alter this position.

Court Disposition

Appeal dismissed

Orders

  • Reliefs sought by the plaintiffs refused
  • Funding agreement declared unlawful and void for illegality