Allied Irish Bank plc -v- Maguire & ors p/a Maguire & Co., Solicitors & ors [2016] IESC 57 (13 October 2016)

Allied Irish Bank plc -v- Maguire & ors p/a Maguire & Co., Solicitors & ors [2016] IESC 57 (13 October 2016)

The Supreme Court held that the proper measure of damages for breach of a solicitor's undertaking is compensatory, not punitive or exemplary. The court's supervisory jurisdiction over solicitors does not entitle it to award damages exceeding the loss actually suffered by the plaintiff. The calculation of damages should be based on the value of the security lost at the time of the breach, not the full amount advanced, and the matter was remitted to the High Court for assessment of compensatory damages.

Citation
[2016] IESC 57
Parties
Plaintiff/respondent: Allied Irish Bank plc; Defendants/appellants: Charles James Maguire, Noel McDonald, Richard Clinch and Tommy Gibbons carrying on practice under the style and title of Seamus Maguire & Co Solicitors
Jurisdiction
Ireland
Judgment Date
13 October 2016
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From High Court
Outcome
Appeal allowed
Legal Topics
Solicitor's Undertakings, Breach of Professional Duty, Compensatory Damages, Calculation of Damages, Court's Supervisory Jurisdiction Over Solicitors
Banking Law Professional Negligence Contract Law Solicitor's Undertakings Breach of Professional Duty Compensatory Damages Calculation of Damages Court's Supervisory Jurisdiction Over Solicitors

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Parties

Allied Irish Bank plc

Plaintiff/respondent

Charles James Maguire, Noel McDonald, Richard Clinch and Tommy Gibbons carrying on practice under the style and title of Seamus Maguire & Co Solicitors

Defendants/appellants

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the court can award non-compensatory damages for breach of a solicitor's undertaking
  2. 2 Proper measure of damages where a solicitor breaches an undertaking and the value of the secured property has declined
  3. 3 Whether the court's supervisory jurisdiction over solicitors justifies an award exceeding compensatory damages

Ratio Decidendi

The Supreme Court held that the proper measure of damages for breach of a solicitor's undertaking is compensatory, not punitive or exemplary. The court's supervisory jurisdiction over solicitors does not entitle it to award damages exceeding the loss actually suffered by the plaintiff. The calculation of damages should be based on the value of the security lost at the time of the breach, not the full amount advanced, and the matter was remitted to the High Court for assessment of compensatory damages.

Court Disposition

Appeal allowed

Orders

  • High Court order set aside
  • Matter remitted to the High Court for calculation of compensatory damages in accordance with the Supreme Court's guidance