The Gazette 1996

GAZETTE

OCTOBER 1996

Discovery in Aid

of Execution

by Stephen Glanville, BL

D i s c o v e ry in aid of e x e c u t i on is a

s e l d om u s ed p r o c e d u re p r o v i d ed f o r in

R S C 0 . 42 r r . 3 6 - 3 7. T h e s e r u l es a l l ow a

party s u b s e q u e nt to j u d g m e nt to m a k e

a p p l i c a t i on to t he c o u rt f o r an o r d er

d i r e c t i ng the j u d g m e nt d e b t o r, a m o n g

o t h e r s, to a t t e nd at t he c o u rt f or the

p u r p o se of g i v i ng i n f o r m a t i on a b o ut the

d e b t o r 's a s s e ts a n d m e a n s.

T h e p r o c e d u re h as b e en u s ed in a

variety of situations, p r i n c i p a l ly w h e re

it is s o u g ht to a p p o i nt a r e c e i v er by w a y

of e q u i t a b le e x e c u t i o n, b ut a l so w h e r e

j u d g m e n t m o r t g a ge a nd g a r n i s h ee

p r o c e e d i n gs are b e i ng p u r s u e d, or

s i mp ly as a p r e l i m i n a ry to e n f o r c e m e n t:

see, f or e x a m p l e, Bu t t e r ly v C u m m i n g

( 1 8 9 8) 1 IR 196, w h e r e the p r o c e d u re

w a s u s ed to i d e n t i fy the d e b t o r 's interest

in certain b u i l d i n g s. T h e p r o c e d u re c an

b e initiated a n d c o m p l e t ed b e f o re the

return of a w r it of fi f a.

Criteria for granting the order:

W h e r e t he j u d g m e nt is f o r the r e c o v e ry

o r p a y m e nt of m o n e y - in d e bt or

d a m a g e s - the party entitled to e n f o r ce

that j u d g m e nt m a y a p p ly to the c o u rt

u n d er r.36 f or an o r d er a g a i n st the

d e b t o r. T h e t e r ms of t he o r d er m a y

p r o v i de f o r the a t t e n d a n ce a nd oral

e x a m i n a t i on of the d e b t or a nd f o r the

p r o d u c t i on of a ny b o o k s a nd

d o c u m e n t s. W h e r e the j u d g m e nt is

a g a i n st a c o r p o r a t i o n, the o r d er m a y b e

a d d r e s s ed to a ny o f f i c er of the

c o r p o r a t i on - this w o u l d s e em to

i n c l u de f o r m e r o f f i c e r s.

In a d d i t i o n, r . 36 p r o v i d es that s u ch an

o r d er m a y b e a d d r e s s ed to " a ny o t h er

p e r s o n ", a b r o ad p r o v i s i on that g i v es the

a p p l i c a t i on s o m e v a r i e t y. F o r e x a m p l e,

in J. L e n n o n S p a r ks V M a h e r 1 9 5 3 - 54

Ir. Jur. R e p . 2, t he w i f e of t he j u d g m e nt

d e b t or w a s o r d e r ed by t he c o u rt to

a t t e nd f o r e x a m i n a t i on to a l l ow t he

r e c e i v er to a s c e r t a in w h i c h p o r t i on of

the j o i nt a c c o u nt that s he h e ld w i th

h er h u s b a nd w a s t he p r o p e r ty of the

actual d e b t o r.

Stephen Granville, BL

In r e s p e ct of i n s o l v e nt c o m p a n i es

a g a i n st w h i ch j u d g m e nt h as b e en

a w a r d e d, it is p o s s i b le that a l i q u i d a t or

or r e c e i v er will b e d e e m e d s u b j e ct to

this p r o c e s s, a l t h o u gh that p r o p o s i t i on

h a s yet to be tested.

It h as a l so b e en s u g g e s t ed that d i s c o v e ry

in aid of e x e c u t i on w o u ld be u s e f ul in

the pursuit of an i n s u r a n ce c o m p a ny that

is u n i d e n t i f i ed or in r e p u d i a t i on of the

p o l i cy in q u e s t i o n. H a v i ng o b t a i n ed

j u d g m e nt against the insured, the

creditor is then in a position to e n f o r ce

the a w a rd a g a i n st the insurer a nd in that

c a se it m a y be p o s s i b le f or the creditor

to d i s c o v er the identity of the insurer

a n d / or its r e a s o ns f o r r e p u d i a t i o n.

E x a m i n a t i on on t h e se issues m a y be

o r d e r ed of the insured, a nd p o s s i b ly a l so

of the insurer (if identified).

W h e r e the j u d g m e nt is o t h er t h an f o r t he

r e c o v e ry or p a y m e nt of m o n e y ( f or

e x a m p l e, f o r the return of p r o p e r ty

u n d e r a c o n t r a c t ), r . 37 p r o v i d es f o r a

s i m i l ar a p p l i c a t i on a nd o r d e r, t h o u gh

t h e re are s i g n i f i c a nt d i f f e r e n c e s.

It s e e ms that r.37 a p p l i c a t i on m a y be

m a d e o n ly a f t er a s t ep h a s b e e n t a k en in

t he e n f o r c e m e nt p r o c e s s, that is. s e r v i ce

of t he j u d g m e n t or o r d er o n t he d e b t or

w i th t he R S C 0.41 r.8 e n d o r s e m e n t.

F u r t h e r mo r e, s o m e difficulty in that

p r o c e ss mu st h a v e arisen b e f o re the

c o u rt will entertain the a p p l i c a t i o n.

H o w e v e r, the a p p l i c a t i on m a y be m a d e

by a ny interested party, a nd not j u st the

party entitled to e n f o r c e m e n t. U n d er

r.37, the c o u rt h as n o p o w e r to o r d er the

p r o d u c t i on of b o o ks a nd d o c u m e n t s.

Finally, s u ch o r d er m a y be m a d e

against " a ny party or o t h e r w i se as m a y

b e j u s t ", w h i ch s e e ms to g i ve the c o u rt a

w i d e discretion.

Procedure:

B y virtue of R S C 0 . 52 r.2, the e x i s t i ng

p r a c t i ce a p p l i es - b ut w h e r e d o e s this

l e a ve the a p p l i c a n t? All r e p o r t ed

a p p l i c a t i o ns h a v e b e e n by m o t i on

parte

b e f o re a j u d g e a nd not the ma s t e r,

a nd a c c o r d i n g ly the a p p l i c a t i on will

c o m e on in t he c o m m o n l aw m o t i o ns

list. A parallel p r o c e d u re a p p l i es in the

circuit c o u rt by virtue of R C C 0 . 5 9 r.14.

A d r a ft of the o r d er is m a d e out - by

parte

d o c k et if in the circuit c o u rt - a nd

filed in c o u rt a l o ng w i th the g r o u n d i ng

affidavit. T h e latter is s w o rn by the

a p p l i c a n t 's solicitor a nd sets out the

f o l l o w i n g:

• t he c i r c u m s t a n c es u n d er w h i ch

j u d g m e n t w a s g i v en

• the d a te a nd n u m b e r of the

j u d g e m e n t: an attested c o p y of the

c o u rt o r d er s h o u ld b e e x h i b i t ed

• the s um in w h i ch it w a s a w a r d ed

a nd t he s um o u t s t a n d i ng

• the failure of the d e b t or to s a t i s fy

the j u d g m e nt

• the r e a s o ns of the a p p l i c a nt f o r

s e e k i ng d i s c o v e r y.

T h e o r d er s h o u ld b e s o u g ht a l o ng t he

f o l l o w i ng lines:

• o r d er u n d er R S C 0 . 4 2 r . 3 6 / 37 f o r

d i s c o v e ry in aid of e x e c u t i on to b e

m a d e by n a m e d p a r t y / p a r t i es

• o r d er f o r t he a t t e n d a n ce a nd oral

e x a m i n a t i on of t he s a m e

• o r d er f o r t he p r o d u c t i on of b o o k s

a n d d o c u m e n ts ( u n l e ss u n d er r.37)

• s u ch f u r t h er or o t h er o r d er as the

c o u rt d e e m s m e et

• o r d er f o r costs.

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