Flannery & anor -v- Walters & ors [2014] IEHC 575 (28 October 2014)

Flannery & anor -v- Walters & ors [2014] IEHC 575 (28 October 2014)

The court fixed security for costs in the full amount, not limited to one-third, because the counterclaim plaintiff is a foreign corporate entity unable to pay costs, and there is no justification for treating it differently from an Irish company in similar circumstances.

Citation
[2014] IEHC 575
Parties
Plaintiff: James Patrick Flannery; Plaintiff: Lexington Services Limited; Defendant: Mortimer John Walters; Defendant: Brian Connell; Defendant: Activity Monitoring Solutions Limited; Defendant: Catharsis Technologies Limited; Defendant: Ashley Trust Limited; Defendant: Ashley Nominees Limited; Counterclaim Plaintiff: Catharsis Technologies Limited; Counterclaim Defendant: James Patrick Flannery; Counterclaim Defendant: Bruce Baheer; Counterclaim Defendant: SHaef-2 Limited
Jurisdiction
Ireland
Judgment Date
28 October 2014
Procedural Posture
Commercial/plenary and Counterclaim / Determination of Amount of Security for Costs to Be Furnished by Counterclaim Plaintiff
Outcome
Application granted; security for costs fixed at full amount.
Legal Topics
Security for Costs, Corporate Plaintiffs, Order 29 Rules of the Superior Courts, Companies Act 1963 S.390, Discretion in Security for Costs
Civil Procedure Commercial Law Security for Costs Corporate Plaintiffs Order 29 Rules of the Superior Courts Companies Act 1963 S.390 Discretion in Security for Costs

Case Brief

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Parties

James Patrick Flannery

Plaintiff

Lexington Services Limited

Plaintiff

Mortimer John Walters

Defendant

Brian Connell

Defendant

Activity Monitoring Solutions Limited

Defendant

Catharsis Technologies Limited

Defendant

Ashley Trust Limited

Defendant

Ashley Nominees Limited

Defendant

Catharsis Technologies Limited

Counterclaim Plaintiff

James Patrick Flannery

Counterclaim Defendant

Bruce Baheer

Counterclaim Defendant

SHaef-2 Limited

Counterclaim Defendant

Procedural Posture

Commercial/plenary and Counterclaim / Determination of Amount of Security for Costs to Be Furnished by Counterclaim Plaintiff

Legal Issues

  1. 1 Whether the 'one-third rule' applies to foreign corporate plaintiffs under Order 29 for security for costs
  2. 2 Whether full security should be ordered against a foreign corporate plaintiff unable to pay costs

Ratio Decidendi

The court fixed security for costs in the full amount, not limited to one-third, because the counterclaim plaintiff is a foreign corporate entity unable to pay costs, and there is no justification for treating it differently from an Irish company in similar circumstances.

Court Disposition

Application granted; security for costs fixed at full amount.

Orders

  • Counterclaim plaintiff Catharsis Technologies Limited to furnish security for costs in the sum of €134,406.00 in respect of the counterclaim defendants’ costs, calculated from 1 May 2014.