IBB Internet Services Ltd -v- Motorola Ltd [2013] IESC 53 (27 November 2013)

IBB Internet Services Ltd -v- Motorola Ltd [2013] IESC 53 (27 November 2013)

The Supreme Court held that Motorola failed to establish by credible testimony that there was reason to believe Imagine would be unable to pay costs if unsuccessful, given the unchallenged expert evidence of the value of Imagine's spectrum assets, which exceeded all liabilities and any likely costs order. The correct legal standard is 'reason to believe', not balance of probabilities, and the trial judge properly assessed all relevant evidence. Even if inability to pay had been established, special circumstances existed due to the alleged wrongdoing of Motorola causing any impecuniosity.

Citation
[2013] IESC 53
Parties
Plaintiffs/respondents: IBB Internet Services Limited, Irish Broadband Internet Services Limited (both trading as Imagine Networks) and Imagine Communications Group Limited; Defendants/appellants: Motorola Limited
Jurisdiction
Ireland
Judgment Date
27 November 2013
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From High Court Order Regarding Security for Costs
Outcome
Appeal dismissed; High Court order refusing security for costs affirmed.
Legal Topics
Security for Costs, Ability to Pay Costs, Interlocutory Applications, Corporate Plaintiffs, Assessment of Evidence
Civil Procedure Company Law Security for Costs Ability to Pay Costs Interlocutory Applications Corporate Plaintiffs Assessment of Evidence

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 3 Authorities cited 13 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

IBB Internet Services Limited, Irish Broadband Internet Services Limited (both trading as Imagine Networks) and Imagine Communications Group Limited

Plaintiffs/respondents

Motorola Limited

Defendants/appellants

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From High Court Order Regarding Security for Costs

Legal Issues

  1. 1 What is the correct legal test under s.390 of the Companies Act, 1963 for ordering security for costs against a corporate plaintiff?
  2. 2 Did Motorola establish by credible testimony that there is reason to believe Imagine would be unable to pay costs if unsuccessful?
  3. 3 Should special circumstances preclude an order for security for costs even if inability to pay is established?

Ratio Decidendi

The Supreme Court held that Motorola failed to establish by credible testimony that there was reason to believe Imagine would be unable to pay costs if unsuccessful, given the unchallenged expert evidence of the value of Imagine's spectrum assets, which exceeded all liabilities and any likely costs order. The correct legal standard is 'reason to believe', not balance of probabilities, and the trial judge properly assessed all relevant evidence. Even if inability to pay had been established, special circumstances existed due to the alleged wrongdoing of Motorola causing any impecuniosity.

Court Disposition

Appeal dismissed; High Court order refusing security for costs affirmed.

Orders

  • No order for security for costs against Imagine.
  • Proceedings to continue without requirement for security.