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Supreme Court of Ireland Decisions |
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You are here: BAILII >> Databases >> Supreme Court of Ireland Decisions >> Superwood Holdings PLC v. Sun Alliance and London Insurance plc (No.2) [1998] IESC 15; [1999] 4 IR 531 (21st July, 1998) URL: http://www.bailii.org/ie/cases/IESC/1998/15.html Cite as: [1998] IESC 15, [1999] 4 IR 531 |
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1. This
is an appeal brought by the above named Appellants against the judgment of the
High Court, Smyth J., delivered on the 15th day of May 1998 and the order of
the High Court made in pursuance thereof dismissing the application made on
behalf of the Plaintiffs for an order extending the time for acceptance of a
lodgment made in these proceedings by the fourth named Respondent in the title
hereof (hereinafter referred to as Lloyds).
2. The
background to this case is set forth in detail in the judgment of Mrs. Justice
Denham delivered on the 27th day of June 1995 and as stated by her:-
3. This
matter came before the Court on the 19th November 1996 and it was ordered that
the Plaintiffs (Appellants herein) do issue and serve on the Defendants
(Respondents herein) on or before Friday, 22nd day of November, 1996 a notice
of motion for leave to adduce further and/or fresh evidence herein which motion
was to be returnable for the 25th November 1996.
4. On
the 25th November 1996, the High Court found that the parties hereto are not
estopped from adducing further and/or new evidence in relation to the
assessment of damages to be made herein and ordered that:-
5. Further
orders were made by the High Court (Smyth J.) on the 10th day and the 11th day
of December 1996.
6. In
pursuance of the order made by Smyth J. on the 25th November 1996 the
Appellants herein caused to be issued a motion dated the 21st February 1997
seeking leave to adduce further and fresh evidence as per the order of the 25th
November 1996; this motion was heard on the 12th and 13th days of March 1997
and on that date the learned trial judge made an order which cited to his
ruling made on the 11th day of March 1997 that the insured plaintiffs may
pursue a claim a claim on contract and/or negligence and that the uninsured
Plaintiffs may pursue a claim in negligence ordered that
7. The
first, second and third named Respondents delivered an amended defence on the
19th November 1996 and the fourth named Respondent delivered an amended defence
on the 10th January 1997.
8. I
base this summary of the orders and rulings made by the learned trial judge on
the documents set forth in the Book of Pleadings submitted on behalf of the
Appellants.
9. In
addition, the Court has been informed that the case has been in progress for 88
days, 55
of
which have been devoted to the cross examination of Mr. Bunyon, which said
cross examination is not yet complete.
10. As
appears from the order dated the 13th March 1997 the learned trial judge
differentiated between what he described as
“the
insured Plaintiffs”
and
“the
uninsured Plaintiffs”
.
11. As
appears from the Policies handed in to the Court, during the course of the
hearing of the appeal, the
“insured
plaintiffs”
are
Superwood Ltd., Superwood Exports Ltd., Superchip Ltd, and Superwood Holdings
Plc.
13. While
Superwood Ltd., Superwood Exports Ltd., Superchip Ltd. and, Superwood Holdings
Plc, are entitled to maintain a claim for damages for both breach of contract
and/or negligence, Superwood (U.K.) Ltd. and Superwood International Ltd. are
limited to a claim for damages for negligence.
14. The
contract of insurance entered into by Lloyds is a separate contract to that
entered into by the first, second and third named Respondents and appears
Sun
Alliance Insurance Group
|
30%
|
Prudential
Assurance Company Ltd.
|
20%
|
Church
and General Insurance Co. Ltd.
|
10%
|
Lloyds
|
40%
|
16. I
have referred to the aforesaid orders of the High Court made by the learned
trial judge for the purpose of illustrating his involvement in and familiarity
with all the issues in this complicated case which, at the time of the making
of the order, the subject matter of the appeal herein, was, and still is, at
hearing before him.
17. During
the course of the hearing of the original action by the Appellants herein and
the appeal from the judgment of the High Court, the Respondents herein were not
separately represented but, as appears from the judgment of the
19. However,
it would appear that the granting of such separate representation has resulted
in a settlement of the Appellant Companies claims in these proceedings, in so
far as they relate to Lloyds, the fourth named Respondents herein.
20. While
the Court has not been informed of the terms of the settlement, it would appear
that it was a term of same that the money lodged in Court by Lloyds pursuant to
the order of the High Court made on the 12th day of November, 1996 be paid out
to the Appellants.
21. By
Notice of Motion dated the 28th day of April 1998 addressed to and served on
the Solicitors for the first, second and third-named and the Solicitors for
Lloyds the Appellants sought:-
23. The
application was not grounded on any affidavit and was heard by the learned
trial judge on the 5th, 8th and 12th days of May 1998.
24. The
application was supported by Counsel for Lloyds and opposed by Counsel for the
first, second and third-named Respondents.
25. By
order dated the 15th day of May, 1998 the Appellants application was refused
for the reasons set forth by him in the course of his judgment on that date.
26. The
Appellants have appealed to this Court against the said Order. As this Order
was an order made by the learned trial judge in the course of an action at
hearing before him - an obviously complicated action involving claims for
damages on behalf of six Plaintiff Companies against four Defendant Insurers
and at this stage at hearing far in excess of 80 days - the first question for
consideration by this Court is whether this Court should at this stage
entertain an appeal against the refusal by the learned trial judge to grant the
application made on behalf of the Appellants.
27. This
Court has on many occasions indicated its disapproval of appeals to this Court
against orders made by a trial judge during the course of hearing an action.
28. The
strongest indication of such disapproval is to be found in
Condon
. v. Minister for Labour
[1981] IR page 62
and
in particular in the judgment of Kenny J. with which O’Higgins C.J. and
Parke J. agreed.
30. It
is clear from a consideration of the judgment in that case, which concerned the
validity having regard to the terms of the Constitution of the
“Regulation
of Banks (Remuneration and Conditions of Employment) (Temporary Provisions)
Act, 1975”
,
that the Court considered it to be
“grossly
irregular”
to
bring
an appeal to the Supreme Court against a ruling of the High Court made in the
course of proceedings before it and expressed strong disapproval of the course
adopted in that case.
31. The
judgment went so far as to state that the Court could dispose of the appeal on
that ground alone but did not do so because of the importance of the issues
involved in the case.
32. I
am satisfied that this case provides ample authority for the proposition that
appeals should not be made to this Court against orders or rulings made by a
trial judge during the course of an action being tried by him or her.
33. It
is, however, submitted on behalf of the Appellants herein that the ruling made
by the learned trial judge in this case was not made during the course of the
proceedings being heard by him because, by virtue of the agreement reached
between the Appellants and Lloyds all proceedings against
34. Lloyds
were at an end and all that was required to implement the settlement, which
brought about this happy conclusion, was that the Appellants be granted an
extension of time for the purpose of accepting the lodgment made by them in
Court.
35. The
learned trial judge, however, considered that there were still outstanding
issues in the case which involved the first, second and third-named Defendants,
including the costs of various interlocutory applications and the costs of the
proceedings and in effect that the claims and causes of action and damages were
inextricably linked or interlocked.
37. It
is clear from the judgment of the learned trial judge that he considered that
the provisions of Order 22 Rule 12 of the Rules of the Superior Courts applied
to the circumstances of this application. Indeed it had been submitted
39. It
is clear from a consideration of the terms of this rule that it applies, and
can apply, only in the circumstances set forth in the said rule,
viz.
41. Whilst
it is unfortunate that the application made in this case was not grounded on an
affidavit disclosing the relevant facts, it is clear from the judgment of the
learned trial judge that the Appellants (the Plaintiffs in the action) have
settled all aspects of their claim against Lloyds pursuant to an agreement made
between them which agreement contained a
“confidentiality
clause”
and
what was described as
‘a
side agreement’
which
dealt with ‘issues arising out of the Civil Liability Act’, but no
settlement was reached in respect of the claim against the other defendants.
The agreement obviously provided for the payment out to the Appellants of the
money lodged in Court by Lloyds as an integral part of the settlement.
42. The
provisions of the
‘side
agreement’
were
made available to counsel for the first, second and third named who objected to
the learned trial judge being informed of its contents and who declined to
receive the document.
43. It
is also clear from the judgment that the learned trial judge accepted that the
agreement provided that there should not be any order for costs as between the
Appellants herein and Lloyds.
44. The
first, second and third named Respondents do not, and indeed could not,
challenge the right of Lloyds to settle the claim brought against them by the
Appellants herein and to refrain from further participation in these
proceedings but object to the payment out to the Appellants of the monies
lodged in Court by Lloyds in satisfaction of the portion of the
Appellants’ claim against them.
45. These
Respondents relied on the provisions of Order 22 Rule 12 of the Rules of the
Superior Courts to support their submission that the monies lodged in Court by
Lloyds could not be paid out to the Appellants unless and until the costs of
the action are dealt with by the trial judge.
46. The
application does not fall under that rule or the precise terms of any other
provision of Order 22 aforesaid. However, the reality of the matter is that the
lodgment was made by Lloyds who have compromised the claim made by the
Plaintiffs on terms which include the payment out to the Plaintiffs of the
monies so lodged. Whether the compromise involves the Plaintiffs retaining all
of those monies or those monies plus additional funds or refunding some part
thereof to Lloyds I do not know. But what can be said with confidence is that
the Plaintiffs and Lloyds are the only parties to the proceedings who have any
possible proprietorial interest in the monies lodged in Court. The other
Defendants have not got, or identified any circumstances in which they might
obtain, any interest whatever in those monies. In those circumstances and in
the absence of any conflicting interest I believe that the monies lodged in
Court should be dealt with by the learned High Court Judge in such manner as
the Plaintiffs and Lloyds have directed.
47. I
am further satisfied that the proceedings in this case so far as they relate to
the claim by the Appellants against Lloyds have been finally determined by
virtue of the agreement between them and without derogating in any way from the
proposition enunciated in the earlier portion of this judgment
viz.
that
appeals should not be made to this Court against orders or rulings made by a
trial judge during the course of an action being tried by him or her, I am
48. I
am further satisfied that there is no rule of law, nor do the interests of
justice require, that there should be any impediment to the implementation of a
desired settlement of even portion of these long protracted proceedings.