Paulson Investments Ltd & Anor -v- Jons Civil Engineering Ltd & Anor [2016] IECA 169 (08 June 2016)

Paulson Investments Ltd & Anor -v- Jons Civil Engineering Ltd & Anor [2016] IECA 169 (08 June 2016)

The lodgement of €500,000 by plaintiffs constitutes a special circumstance justifying refusal of security for costs, given the advanced stage of proceedings and complexity of issues. Defendants established prima facie defences, but the interests of justice require the appeal be allowed and the High Court order for security for costs be vacated.

Citation
[2016] IECA 169
Parties
Plaintiff/appellant: Paulson Investments Ltd.; Plaintiff/appellant: Albert Enterprises Ltd.; Defendant/respondent: Jons Civil Engineering Ltd.; Defendant/respondent: P. J. Edwards and Co. Ltd.
Jurisdiction
Ireland
Judgment Date
08 June 2016
Procedural Posture
Appeal / Judgment
Outcome
appeal allowed; High Court order for security for costs set aside
Legal Topics
Security for Costs, Prima Facie Defence, Special Circumstances, Contractual Liability, Negligence, Subcontractor Liability, Delay in Application, Discovery Obligations
Civil Procedure Company Law Construction Law Security for Costs Prima Facie Defence Special Circumstances Contractual Liability Negligence +3 more

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Parties

Paulson Investments Ltd.

Plaintiff/appellant

Albert Enterprises Ltd.

Plaintiff/appellant

Jons Civil Engineering Ltd.

Defendant/respondent

P. J. Edwards and Co. Ltd.

Defendant/respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether defendants established a prima facie defence to plaintiffs' claims
  2. 2 Whether special circumstances exist to justify refusal of security for costs
  3. 3 Responsibility for defective workmanship under IEI contract

Ratio Decidendi

The lodgement of €500,000 by plaintiffs constitutes a special circumstance justifying refusal of security for costs, given the advanced stage of proceedings and complexity of issues. Defendants established prima facie defences, but the interests of justice require the appeal be allowed and the High Court order for security for costs be vacated.

Court Disposition

appeal allowed; High Court order for security for costs set aside

Orders

  • Order for security for costs vacated
  • Court to hear parties on undertakings regarding €500,000 lodgement