Kenny & Anor v BGM Engineering LTD & Anor (Approved) [2023] IEHC 368 (28 April 2023)

Kenny & Anor v BGM Engineering LTD & Anor (Approved) [2023] IEHC 368 (28 April 2023)

The applicant's prior institution of summary proceedings in 2013 constituted a repudiation of the arbitration agreement, which was accepted by the respondents, rendering the agreement inoperative. Additionally, the applicant's delay and engagement in the litigation process estopped it from relying on the arbitration clause.

Citation
[2023] IEHC 368
Parties
Plaintiff: Alan Kenny; Plaintiff: Emma Claire Mullally; Defendant: BGM Engineering Limited; Defendant: Creedon Construction Limited
Jurisdiction
Ireland
Judgment Date
28 April 2023
Procedural Posture
Application for Stay of Proceedings / Interlocutory Application
Outcome
Application for stay refused
Legal Topics
Stay of Proceedings, Arbitration Agreement, Repudiation, Estoppel, Delay, Limitation Defence

Case Brief

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Parties

Alan Kenny

Plaintiff

Emma Claire Mullally

Plaintiff

BGM Engineering Limited

Defendant

Creedon Construction Limited

Defendant

Procedural Posture

Application for Stay of Proceedings / Interlocutory Application

  1. 1 Whether the arbitration agreement is inoperative due to prior litigation conduct
  2. 2 Whether the applicant is estopped from relying on the arbitration clause due to delay and conduct
  3. 3 Whether the institution of prior proceedings constituted a repudiation of the arbitration agreement

Ratio Decidendi

The applicant's prior institution of summary proceedings in 2013 constituted a repudiation of the arbitration agreement, which was accepted by the respondents, rendering the agreement inoperative. Additionally, the applicant's delay and engagement in the litigation process estopped it from relying on the arbitration clause.

Court Disposition

Application for stay refused

Orders

  • Application for stay of proceedings refused
  • Indicative view that costs be awarded to respondents with stay on execution pending final resolution