Rayan Restaurant Ltd -v- Julies Company Restaurant Ltd & ORS [2005] IEHC 137 (18 April 2005)

Rayan Restaurant Ltd -v- Julies Company Restaurant Ltd & ORS [2005] IEHC 137 (18 April 2005)

Plaintiff failed to provide credible evidence or accounts linking insolvency to alleged wrongdoing of defendants; mere assertions are insufficient. Security for costs is ordered as no special circumstances are established to justify refusal.

Citation
[2005] IEHC 137
Parties
Plaintiff: Rayan Restaurant Limited; First Defendant: Julies Company Restaurant Limited; Second Defendant: Claudia Pascau; Third Defendant: Catherine Murphy-Flynn; Third Party: Jamel Mennad
Jurisdiction
Ireland
Judgment Date
18 April 2005
Procedural Posture
Circuit Court Appeal / Preliminary Motions for Security for Costs
Outcome
Security for costs ordered against plaintiff company in favour of second and third defendants.
Legal Topics
Security for Costs, Corporate Insolvency, Lease Termination, Equitable Relief
Company Law Civil Procedure Security for Costs Corporate Insolvency Lease Termination Equitable Relief

Case Brief

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Parties

Rayan Restaurant Limited

Plaintiff

Julies Company Restaurant Limited

First Defendant

Claudia Pascau

Second Defendant

Catherine Murphy-Flynn

Third Defendant

Jamel Mennad

Third Party

Procedural Posture

Circuit Court Appeal / Preliminary Motions for Security for Costs

Legal Issues

  1. 1 Whether the plaintiff company should be ordered to provide security for costs under s. 390 Companies Act, 1963
  2. 2 Whether the plaintiff's insolvency was caused by alleged wrongdoing of the defendants
  3. 3 Whether special circumstances exist to justify refusal of security for costs

Ratio Decidendi

Plaintiff failed to provide credible evidence or accounts linking insolvency to alleged wrongdoing of defendants; mere assertions are insufficient. Security for costs is ordered as no special circumstances are established to justify refusal.

Court Disposition

Security for costs ordered against plaintiff company in favour of second and third defendants.

Orders

  • Plaintiff to provide sufficient security for costs for second and third defendants under s. 390 Companies Act, 1963.
  • Amount of security to be determined by agreement or by county registrar, with right of appeal to High Court.