Mooney & Anor -v- Kearns & Ors [2016] IEHC 31 (25 January 2016)
The insurer's delay in repudiating indemnity, despite active investigation and indication of cover, directly caused the plaintiffs to incur substantial costs in preparing for trial. Reasonable and diligent inquiries should have revealed the grounds for repudiation much earlier. Therefore, the insurer is liable for...
Source-derived case information.
- Citation
- [2016] IEHC 31
- Parties
- Plaintiff: Michael Mooney; Plaintiff: Audrey Mooney; Plaintiff: John Bermingham; Defendant: Martin J. Kearns; Defendant: Thomas Gormally; Defendant: Noel McCarrick; Defendant: Samantha Schmidt; Defendant: Global Group Ireland Limited
- Jurisdiction
- Ireland
- Judgment Date
- 25 January 2016
- Procedural Posture
- Motion to Come Off Record / Interlocutory Application
- Outcome
- Application granted with conditions
- Legal Topics
- Professional Indemnity, Solicitor Coming Off Record, Costs Liability, Repudiation of Insurance, Subrogation, Delay in Repudiation
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Summary, issues, holding and outcome
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Parties
Michael Mooney
Plaintiff
Audrey Mooney
Plaintiff
John Bermingham
Plaintiff
Martin J. Kearns
Defendant
Thomas Gormally
Defendant
Noel McCarrick
Defendant
Samantha Schmidt
Defendant
Global Group Ireland Limited
Defendant
Procedural Posture
Motion to Come Off Record / Interlocutory Application
Legal Issues
- 1 Whether solicitor can be compelled to act after insurer withdraws indemnity
- 2 Whether insurer is liable for costs due to delay in repudiation
- 3 Appropriate conditions for solicitor to come off record
Ratio Decidendi
The insurer's delay in repudiating indemnity, despite active investigation and indication of cover, directly caused the plaintiffs to incur substantial costs in preparing for trial. Reasonable and diligent inquiries should have revealed the grounds for repudiation much earlier. Therefore, the insurer is liable for plaintiffs' costs from 1 January 2012, the date by which repudiation should reasonably have occurred.
Court Disposition
Application granted with conditions
Orders
- LK Shields permitted to come off record as solicitors for Martin J. Kearns.
- Insurer liable to discharge plaintiffs' costs from 1 January 2012.
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