A recent decision of the Supreme Court to award legal costs against a director of an insolvent company demonstrates the Courts' approach to directors who do not act in good faith and seek to use litigation through the company for their own personal benefit.
The Supreme Court has just delivered a judgment confirming the entitlement of a judgment debtor to appoint a receiver by way of equitable execution.
The comprehensive judgment is a useful history lesson in the development and expansion of the right to appoint a receiver by way of equitable execution which derives from the old Judicator (Ireland) Act, 1877.
Background
Judgment was obtained by a bank in February 2011 against two borrowers in the amount of €1,064,747.
In a recent judgement, the Supreme Court has upheld a High Court order for costs against a director of a number of companies (theCompanies) which were involved in proceedings with First Active plc (First Active), despite the fact that the director was not a party to the proceedings.
The Court took the view that the director (Mr Cunningham), who also owned or controlled the Companies, had funded the proceedings and should be held accountable for the costs.
Background to the order for costs
SPV Osus Ltd v. HSBC Institutional Trust Services (Ireland) Limited & Ors [2018] IESC 44
On 6 February 2018, the Irish Supreme Court agreed to hear an appeal in ACC Loan Management Limited v Rickard1 ("Rickard") in relation to the appointment of a receiver in aid of execution on the basis that the issue was one of general and public importance.
Background
What happens if you assign your right to litigate to a person or company that is unconnected to the event that creates the right to litigate? In the recent Supreme Court case of SPV Osus Ltd –v- HSBC Institutional Trust Services (Ireland) Limited & Ors [2018] IESC 44, the Supreme Court held that this sort of transaction is void under Irish law and contrary to public policy.
Madoff ponzi scheme litigation
The Irish President has signed the Credit Institutions (Stabilisation) Act 2010 (the Act) into lrish law. The Act grants far reaching and unprecedented powers to the Irish Minister for Finance to facilitate the restructuring and stabilisation of the troubled Irish banking sector.