Madden -v- Anglo irish Bank Corporation PLC [2004] IESC 108 (17 December 2004)

Madden -v- Anglo irish Bank Corporation PLC [2004] IESC 108 (17 December 2004)

The appellant's claim is a reflective loss claim as a shareholder/creditor and is not maintainable in law; only the company may sue for such loss. The statement of claim discloses no reasonable cause of action. Allegations of fraud were not properly pleaded and, even if considered, do not alter the legal position. The High Court was correct to strike out the proceedings.

Citation
[2004] IESC 108
Parties
Plaintiff/appellant: Liam Madden; Defendant/respondent: Anglo Irish Bank Corporation PLC; Defendant/respondent: William Lacy
Jurisdiction
Ireland
Judgment Date
17 December 2004
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court Order Striking Out Claim
Outcome
appeal dismissed
Legal Topics
Reflective Loss, Strike Out Application, Shareholder Actions, Ultra Vires Acts, Companies Act 1963 S.60
Company Law Civil Procedure Reflective Loss Strike Out Application Shareholder Actions Ultra Vires Acts Companies Act 1963 S.60

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 14 Party arguments 2
Sign in to unlock

Parties

Liam Madden

Plaintiff/appellant

Anglo Irish Bank Corporation PLC

Defendant/respondent

William Lacy

Defendant/respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court Order Striking Out Claim

Legal Issues

  1. 1 Whether a shareholder/creditor can maintain a personal claim for loss reflective of company loss
  2. 2 Whether the statement of claim discloses a reasonable cause of action
  3. 3 Whether allegations of fraud or procedural irregularity allow the claim to proceed

Ratio Decidendi

The appellant's claim is a reflective loss claim as a shareholder/creditor and is not maintainable in law; only the company may sue for such loss. The statement of claim discloses no reasonable cause of action. Allegations of fraud were not properly pleaded and, even if considered, do not alter the legal position. The High Court was correct to strike out the proceedings.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed
  • High Court order striking out claim affirmed