McCool -v- Honeywell Control Systems Ltd [2018] IEHC 167 (10 April 2018)

McCool -v- Honeywell Control Systems Ltd [2018] IEHC 167 (10 April 2018)

The assignment of the company's cause of action to Mr. McCool was an artifice to circumvent the rule in Battle, constituted an abuse of process, and was invalid. Even if not an abuse of process, the assignment expressly provided for onward transfer to a third party, savouring of champerty, and was thus contrary to public policy and invalid.

Citation
[2018] IEHC 167
Parties
Plaintiff: Eugene McCool (substituted as plaintiff for McCool Controls and Engineering Limited); Defendant: Honeywell Control Systems Limited
Jurisdiction
Ireland
Judgment Date
10 April 2018
Procedural Posture
Plenary Summons / Application to Discharge Order Substituting Mr. Mc Cool as Plaintiff
Outcome
Order of the Master discharged; Mr. McCool's application dismissed.
Legal Topics
Assignment of Cause of Action, Representation of Companies in Litigation, Abuse of Process, Champerty, Maintenance, Public Policy
Company Law Civil Procedure Assignment of Cause of Action Representation of Companies in Litigation Abuse of Process Champerty Maintenance Public Policy

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Parties

Eugene McCool (substituted as plaintiff for McCool Controls and Engineering Limited)

Plaintiff

Honeywell Control Systems Limited

Defendant

Procedural Posture

Plenary Summons / Application to Discharge Order Substituting Mr. Mc Cool as Plaintiff

Legal Issues

  1. 1 Whether the assignment of the company's cause of action to Mr. McCool is valid
  2. 2 Whether the assignment is an abuse of process to circumvent the rule in Battle v. Irish Art Promotion Centre Ltd
  3. 3 Whether the assignment is champertous and contrary to public policy

Ratio Decidendi

The assignment of the company's cause of action to Mr. McCool was an artifice to circumvent the rule in Battle, constituted an abuse of process, and was invalid. Even if not an abuse of process, the assignment expressly provided for onward transfer to a third party, savouring of champerty, and was thus contrary to public policy and invalid.

Court Disposition

Order of the Master discharged; Mr. McCool's application dismissed.

Orders

  • Order discharging the Master's order substituting Mr. McCool as plaintiff.
  • Order dismissing Mr. McCool's application.