Mark Smith v Mark Cunningham & Ors (Approved) [2023] IESC 13 (25 May 2023)

Mark Smith v Mark Cunningham & Ors (Approved) [2023] IESC 13 (25 May 2023)

The Supreme Court held that in claims for pure economic loss arising from solicitor negligence in conveyancing, the cause of action accrues when the plaintiff acquires an asset that is immediately less valuable due to a defect (here, a defective title), not when the loss is later realised or crystallised by a failed sale. The plaintiff's position was immediately and measurably worsened upon purchase, so the limitation period ran from that date, rendering the claim statute barred.

Citation
[2023] IESC 13
Parties
Plaintiff/appellant: Mark Smith; Defendant/respondent: Mark Cunningham; Defendant/respondent: Kevin Sorohan; Defendant/respondent: Ann-Marie Sorohan; Defendant/respondent: Paul Kelly practicing under the style and title of Paul Kelly & Company, Solicitors
Jurisdiction
Ireland
Judgment Date
25 May 2023
Procedural Posture
Appeal / Supreme Court Judgment on Appeal From Court of Appeal
Outcome
Appeal dismissed; claim statute barred.
Legal Topics
Statute of Limitations, Pure Economic Loss, Negligence by Solicitors, Accrual of Cause of Action, Conveyancing
Tort Law Professional Negligence Limitation of Actions Statute of Limitations Pure Economic Loss Negligence by Solicitors Accrual of Cause of Action Conveyancing

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Parties

Mark Smith

Plaintiff/appellant

Mark Cunningham

Defendant/respondent

Kevin Sorohan

Defendant/respondent

Ann-Marie Sorohan

Defendant/respondent

Paul Kelly practicing under the style and title of Paul Kelly & Company, Solicitors

Defendant/respondent

Procedural Posture

Appeal / Supreme Court Judgment on Appeal From Court of Appeal

Legal Issues

  1. 1 When does the cause of action accrue for the purposes of the Statute of Limitations in a claim for pure economic loss against solicitors in a conveyancing transaction?
  2. 2 Is the plaintiff's claim statute barred because damage occurred at the time of purchase or only when the subsequent sale collapsed due to planning defects?

Ratio Decidendi

The Supreme Court held that in claims for pure economic loss arising from solicitor negligence in conveyancing, the cause of action accrues when the plaintiff acquires an asset that is immediately less valuable due to a defect (here, a defective title), not when the loss is later realised or crystallised by a failed sale. The plaintiff's position was immediately and measurably worsened upon purchase, so the limitation period ran from that date, rendering the claim statute barred.

Court Disposition

Appeal dismissed; claim statute barred.

Orders

  • The plaintiff's claim is statute barred and cannot proceed.
  • No order as to costs specified in the judgment.