Lismore Homes Ltd. v. Bank of Ireland Finance Ltd. [2001] IESC 79; [2002] 1 ILRM 541 (5 October 2001)

Lismore Homes Ltd. v. Bank of Ireland Finance Ltd. [2001] IESC 79; [2002] 1 ILRM 541 (5 October 2001)

The plain meaning of 'sufficient security' in s.390 Companies Act 1963 requires a reasonable estimate of the actual costs anticipated for the defendant, not a partial or nominal amount. The court's discretion is limited to whether security should be ordered, not to reducing the quantum below what is sufficient for those costs.

Citation
[2001] IESC 79
Parties
Appellant: Homes; First Named Defendant: Bank; Secondly Named Defendant: Deloitte; Related Plaintiff: Builders (Lismore Builders Limited)
Jurisdiction
Ireland
Judgment Date
05 October 2001
Procedural Posture
Appeal / Judgment on Appeal and Cross Appeal
Outcome
Appeal and cross-appeal dismissed
Legal Topics
Security for Costs, Interpretation of Statutory Provisions, Discretion of Court, Quantum of Security
Company Law Civil Procedure Security for Costs Interpretation of Statutory Provisions Discretion of Court Quantum of Security

Case Brief

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Parties

Homes

Appellant

Bank

First Named Defendant

Deloitte

Secondly Named Defendant

Builders (Lismore Builders Limited)

Related Plaintiff

Procedural Posture

Appeal / Judgment on Appeal and Cross Appeal

Legal Issues

  1. 1 Proper construction of s.390 of the Companies Act 1963 regarding security for costs
  2. 2 Discretion of the court in fixing the amount of security
  3. 3 Whether 'sufficient security' means complete or partial security

Ratio Decidendi

The plain meaning of 'sufficient security' in s.390 Companies Act 1963 requires a reasonable estimate of the actual costs anticipated for the defendant, not a partial or nominal amount. The court's discretion is limited to whether security should be ordered, not to reducing the quantum below what is sufficient for those costs.

Court Disposition

Appeal and cross-appeal dismissed

Orders

  • Security for costs to Bank and Deloitte fixed at £200,000 each as previously ordered by the trial judge