Quinn Insurance Ltd (Under Administration) v Pricewaterhousecoopers (A Firm) (Approved) [2020] IECA 109 (21 April 2020)

Quinn Insurance Ltd (Under Administration) v Pricewaterhousecoopers (A Firm) (Approved) [2020] IECA 109 (21 April 2020)

Quinn failed to establish, on a prima facie basis, that the quantum of its claim would reverse its inability to pay costs, as even full recovery would leave a deficit. The litigation is not sufficiently of exceptional public importance to justify refusal of security. The balance of justice and fairness requires Quinn to provide security for PwC's costs, as litigation will continue and PwC faces significant financial risk.

Citation
[2020] IECA 109
Parties
Plaintiff/respondent: Quinn Insurance Limited (Under Administration); Defendant/appellant: PricewaterhouseCoopers (A Firm)
Jurisdiction
Ireland
Judgment Date
21 April 2020
Procedural Posture
Appeal / Court of Appeal Judgment on Security for Costs
Outcome
Appeal allowed
Legal Topics
Security for Costs, Corporate Insolvency, Auditor Liability, Public Interest Litigation
Company Law Civil Procedure Security for Costs Corporate Insolvency Auditor Liability Public Interest Litigation

Case Brief

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Parties

Quinn Insurance Limited (Under Administration)

Plaintiff/respondent

PricewaterhouseCoopers (A Firm)

Defendant/appellant

Procedural Posture

Appeal / Court of Appeal Judgment on Security for Costs

Legal Issues

  1. 1 Whether Quinn Insurance should be required to provide security for costs under s.52 Companies Act 2014
  2. 2 Whether Quinn's inability to pay costs stems from alleged wrongdoing by PwC
  3. 3 Whether the litigation raises issues of exceptional public importance justifying refusal of security

Ratio Decidendi

Quinn failed to establish, on a prima facie basis, that the quantum of its claim would reverse its inability to pay costs, as even full recovery would leave a deficit. The litigation is not sufficiently of exceptional public importance to justify refusal of security. The balance of justice and fairness requires Quinn to provide security for PwC's costs, as litigation will continue and PwC faces significant financial risk.

Court Disposition

Appeal allowed

Orders

  • Quinn Insurance Limited to provide security for costs as directed by the High Court
  • Form and amount of security to be determined by the High Court