Crilly v. T. & J. Farrington Ltd. [2001] IESC 60; [2002] 1 ILRM 161 (11 July 2001)

Crilly v. T. & J. Farrington Ltd. [2001] IESC 60; [2002] 1 ILRM 161 (11 July 2001)

The method of calculating the charge under s.2 of the Health (Amendment) Act, 1986 by dividing annual hospital costs by the number of occupied hospital bed days (ADC) is reasonable, proper, and intra vires the Act. The Act does not require charges to be based on the actual services received, and averaging is a reasonable and transparent method. The appeal is allowed and the High Court order is set aside.

Citation
[2002] 1 ILRM 161
Parties
Claimant/appellant: Eastern Health Board (now Eastern Regional Health Authority); First Named Respondent: Derek Crilly; Second Named Respondent: FBD Insurance plc; Defendant: T.J. Farrington Limited; Defendant: John O’Connor
Jurisdiction
Ireland
Judgment Date
11 July 2001
Procedural Posture
Appeal / Supreme Court Judgment on Appeal From High Court
Outcome
Appeal allowed; cross-appeal dismissed.
Legal Topics
Hospital Charges, Calculation of Statutory Charges, Delegated Authority, Reasonableness of Administrative Action, Use of Parliamentary Materials in Interpretation
Health Law Administrative Law Statutory Interpretation Hospital Charges Calculation of Statutory Charges Delegated Authority Reasonableness of Administrative Action Use of Parliamentary Materials in Interpretation

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Parties

Eastern Health Board (now Eastern Regional Health Authority)

Claimant/appellant

Derek Crilly

First Named Respondent

FBD Insurance plc

Second Named Respondent

T.J. Farrington Limited

Defendant

John O’Connor

Defendant

Procedural Posture

Appeal / Supreme Court Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the method of calculating hospital charges under s.2 of the Health (Amendment) Act, 1986 by averaging annual hospital costs over occupied bed days is reasonable, proper, and intra vires the Act
  2. 2 Whether parliamentary materials (ministerial statements) may be used in interpreting the statute

Ratio Decidendi

The method of calculating the charge under s.2 of the Health (Amendment) Act, 1986 by dividing annual hospital costs by the number of occupied hospital bed days (ADC) is reasonable, proper, and intra vires the Act. The Act does not require charges to be based on the actual services received, and averaging is a reasonable and transparent method. The appeal is allowed and the High Court order is set aside.

Court Disposition

Appeal allowed; cross-appeal dismissed.

Orders

  • Declaration granted that the method of calculation of the charge under s.2 of the Health (Amendment) Act, 1986 by division of annual hospital costs by occupied hospital bed days is reasonable, proper, and intra vires the Act.
  • Order of the High Court set aside.