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High Court of Ireland Decisions |
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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> Ward v. O'Callaghan [1998] IEHC 16 (2nd February, 1998) URL: http://www.bailii.org/ie/cases/IEHC/1998/16.html Cite as: [1998] IEHC 16 |
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1. This
is an application brought by the Third Party in which it seeks, by Notice of
Motion dated the 11th December, 1997, an Order pursuant to Order 16, Rule 8(3),
of the Superior Court Rules, an Order setting aside the Order of this Court
made on the 7th July, 1997 joining the Third Party as Third Party to these
proceedings.
3. The
Plaintiff in this action claims that she suffered personal injuries as a result
of the negligent driving of a car owned by the First named Defendant, Mr. Peter
O'Callaghan, which, it would appear, was uninsured at the time when it was
involved in the accident. The circumstances in which it came to be uninsured
are claimed by the First named Defendant to be as follows. He says in his
Affidavit, grounding the application to join the Third Party, that he was
driving his car on the 8th November, 1991 when he was in collision with the
Plaintiff's car and as a result of this collision she suffered injuries. He
says that he insured his car through the agency of the Third Party, Mike Murphy
Insurance Brokers Limited, in October of 1991 and this insurance was placed
with a Zurich Insurance Company. This policy of insurance was renewed on an
annual basis through the agency of the Third Party. Due to an accident which
the First named Defendant had, he was unable to drive his car and at his
request the policy was suspended during his illness. Subsequently, when the
First named Defendant had recovered he wished to reinstate the policy so he
informed the Third Party in October 1991 by telephone that he wished to do so.
He was told on that occasion that in order to renew the policy it would be
necessary to have a medical report. He obtained the medical report and this
was forwarded to the Zurich Insurance Company, however they replied that it was
not a medical report which they required but an engineer's report (presumably
on the First named Defendant's car). They would not reinstate the policy
without this report. The First named Defendant says that he was never told by
the Third Party of the necessity to obtain the engineer's report and it is
alleged that the Third Party represented to the First named Defendant that his
insurance policy had been reinstated and that he was covered to drive his car.
He was involved in the accident shortly afterwards. He now claims indemnity or
contribution in respect of any sum that he is required to pay to the Plaintiff
against the Third Party.
4. It
is agreed by the parties that the Third Party is not a concurrent wrongdoer
with the First named Defendant and accordingly Section 27(1)(b) of the Civil
Liability Act, 1961 has no application.
6. The
Third Party now applies under Order 16, Rule 8(3), to set aside the Third Party
proceeding. The basis upon which the application is made is that there has
been, firstly, unnecessary and unreasonable delay in serving the Third Party
Notice and well over the twenty-eight days provided for in Order 16, Rule 1(3).
Secondly, it is alleged that the Third Party has suffered prejudice as a result
of that delay.
7. The
Superior Court Rules provide that the application to join the Third Party is to
be made within twenty-eight days from the time limited for the delivery of the
defence to the Plaintiff's Statement of Claim. The Statement of Claim was
delivered on the 14th February, 1996 and so the time limit for the service of
the Third Party Notice expired twenty-eight days later. In fact the Third
Party Notice was not served until on or about the 24th July, 1997, that is
approximately one year and four months later.
8. In
my view, while clearly the First named Defendant has failed to comply with the
time limit provided for in the Rules, this delay would not, standing alone, be
of such significance as to constitute a ground for setting aside the Third
Party procedure. In my view, to constitute such a ground it would be necessary
for the delay of this length to be coupled with circumstances which amounted to
a prejudice suffered by the Third Party based on this delay.
9. The
prejudice claimed in the proceedings by the Third Party is contained in
paragraph 10 of Mr. Murphy's Affidavit sworn the 4th December, 1997. In this
he says that despite an extensive search in the offices of Mike Murphy
Insurance Brokers Limited, it has been impossible to locate the documents and
files relating to the First named Defendant. This arises because of the long
period of time which has elapsed. He says:-
10. Mr.
Murphy goes on to say that he believes as a consequence the Third Party has
been severely prejudiced "by the inordinate and inexcusable delay of the First
named Defendant in bringing proceedings joining the Third Party".
11. On
one reading of this Affidavit, the suggestion is made that it was only upon the
service of the Third Party proceedings on the Third Party that they first
became aware of the necessity to locate the documents involved in the
transaction, however I am satisfied that this cannot have been the case. The
First named Defendant was prosecuted under the Road Traffic Act for driving his
car without insurance cover. Arising out of this prosecution the First named
Defendant's Solicitors made enquiries from the Third Party in relation to the
insurance cover and by letter of the 9th March, 1995, the Third Party informed
them that their records had been destroyed. Accordingly, the disadvantage or
prejudice which flows from the Third Party's inability to have access to these
documents arose prior to the time when it was necessary for the First named
Defendant, even complying strictly with the provisions of the Rules, to serve
the Third Party Notice since the Statement of Claim was only served in February
of 1996. In my view, such prejudice as arises relates not to any delay on the
First named Defendant's part.
12. Apart
from all of the considerations, it has been the view of the Courts that, save
in exceptional circumstances, it is desirable that all issues as to indemnity
or contribution as between third parties and defendants should be disposed of
at the same time as the issues relating to the defendant's liability towards
the plaintiff. Such a view, in my view, should only be departed from where
serious prejudice would arise as a result of following this course. I am of
the view that no such prejudice arises in this case and I accordingly refuse
the relief sought.