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GAZETTE

DECEMBER 1989

)

INSURANCE

ACT

SEMINAR

A seminar will be held in

Blackhall Place on

Thursday, 16th November

at 7 . 15 p .m.

on

The Insurance Act, 1989"

A panel of speakers will look

at the practical and legal

implications of the legislation.

Entrance Free - All welcome.

Michael Irvine, Chairman,

Company Law Committee

that the Plaintiff was solvent, had

a proven claim, and had acted

speedily, whereas the Defendant's

claim was dubious, unquantifiable

and likely to involve great delay;

accordingly he refused leave to

defend.

The Judge cannot be faulted for

his evaluation of the relevant

factors or his conclusion. But

(whatever was agreed by the

parties) did he in fact have a

discretion to allow an unrelated

counterclaim? It appears that three

out of five Judges in

Prendergast

while doubtless agreeing with the

result he reached, would have

found that he should have dis-

missed the Defendant's application

out of hand, while Kingsmill Moore

J., on whom he relied, expressed

different views in different parts of

his Judgment.

Conclusion

The point is not academic: in

practice many defendants in sum-

mary claims will have plausible

cross allegations involving unliqui-

dated amounts. The rules for

determining equitable set off are

not always easy to apply, and in any

case many cross claims clearly fall

outside that category, counting as

unrelated coun t e r c l a ims, not

defences. One case likely to arise

in practice is the claim by a Bank

on an overdrawn current account

met by a cross allegation of libel in

dishonouring cheques drawn on it.

Should the Court find that this is a

set off, it may clearly be pleaded;

should the Court find it to be a

counterclaim the practice in the

High Court now apparently runs

contrary to authority, and the

authority most likely to be cited in

this regard is in effect a dissenting

view. Hopefully when the issue

next reaches the Supreme Court,

Prendergast -v- Biddle

will be

reviewed and a clear indication

given as to whether the majority

view, the contrary but equally rigid

view of Maguire C.J., or the

discretion suggested by Kingsmill

Moore J., is the correct approach.

( I ) Supreme Court, 31st July, 1957,

Unreported.

( 2 ) Particular thanks are due to Miss Peggy

McQuinn, of the Supreme Court Office

Judgments Section, for her invaluable

assistance in checking the Supreme

Court records.

( 3) It is not clear whether his Judgment

was reserved or extempore, although

the Supreme Court evidently had a full

note of it.

( 4) Order 37, Rule 8,9.

( 5) At page 6 of his Judgment.

( 6) At page 4 of his Judgment.

(7 ) At page 2 of his Judgment.

( 8) Agra Trading -v- Minister for Agriculture,

High Court, 19th May, 1983,

Unreported.

( 9) For a full review of this area of the law,

see Hanak -v- Green [1958] 2 Q.B. 9.

(10) [1978] I.R. 167.

( I I ) See Footnote (8) above.

(12) At pages 10 to 11 of his Unreported

Judgment.

(13) At page 11 of his Unreported

Judgment.

CAPITAL ACQUISITIONS

TAX

-A PROBLEM ?

Investment in Woodland

should be part of the solution.

Contact:

Woodland Investments Ltd.,

New Dock Street, Galway.

Phone:091-62016.

Fax: 091-65821.

Doyle Court Reporters

Court and Conference Verbatim Reporting

2, Arran Quay, Dublin 7.

Tel: 7 2 2 8 33 or 8 6 2 0 97

(After Hours)

Excellence in Reporting since 1954

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