Lismore Homes Ltd. v. Bank of Ireland Finance Ltd. [2001] IESC 79; [2002] 1 ILRM 541 (5 October 2001)

Lismore Homes Ltd. v. Bank of Ireland Finance Ltd. [2001] IESC 79; [2002] 1 ILRM 541 (5 October 2001)

'Sufficient security' under section 390 of the Companies Act 1963 requires the court to make a reasonable estimate of the actual costs the defendant will likely incur, and the security ordered must be adequate to cover those costs. The court does not have a general discretion to order a lesser amount based on the plaintiff's circumstances or general justice; the statutory language is clear and must be followed.

Citation
[2002] 1 ILRM 541
Parties
Appellant/plaintiff: Homes; First Named Defendant/respondent: Bank; Second Named Defendant/respondent: Deloitte; Related Plaintiff (not Party to This Appeal): Builders (Lismore Builders Limited in receivership)
Jurisdiction
Ireland
Judgment Date
05 October 2001
Procedural Posture
Appeal / Judgment on Appeal From High Court Order Fixing Security for Costs
Outcome
Appeal and cross-appeal dismissed
Legal Topics
Security for Costs, Interpretation of Statutes, Discretion of Court, Costs in Litigation
Company Law Civil Procedure Security for Costs Interpretation of Statutes Discretion of Court Costs in Litigation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 16 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Homes

Appellant/plaintiff

Bank

First Named Defendant/respondent

Deloitte

Second Named Defendant/respondent

Builders (Lismore Builders Limited in receivership)

Related Plaintiff (not Party to This Appeal)

Procedural Posture

Appeal / Judgment on Appeal From High Court Order Fixing Security for Costs

Legal Issues

  1. 1 Proper construction of section 390 of the Companies Act 1963 regarding security for costs
  2. 2 Whether 'sufficient security' means full or partial security for costs
  3. 3 Extent of court's discretion in fixing amount of security

Ratio Decidendi

'Sufficient security' under section 390 of the Companies Act 1963 requires the court to make a reasonable estimate of the actual costs the defendant will likely incur, and the security ordered must be adequate to cover those costs. The court does not have a general discretion to order a lesser amount based on the plaintiff's circumstances or general justice; the statutory language is clear and must be followed.

Court Disposition

Appeal and cross-appeal dismissed

Orders

  • Security for costs fixed at £200,000 for each of the Bank and Deloitte is affirmed
  • No change to the High Court order