The High Court allowed three related claims against Allied Irish Banks plc to proceed after granting the plaintiffs two weeks to serve statements of claim. It also ordered the three proceedings consolidated. The court refused a similar extension in Patrick Joseph Flynn’s separate personal action against the bank.
The ruling concerned applications to extend the time for delivering statements of claim. It did not decide whether the bank was liable for the alleged conduct.
The related proceedings were brought by Flynn as absolute assignee of causes of action held by Flynn’s Irish Gateaux Company Limited, by Flynn as a company shareholder, and by Mary Margaret Flynn as a shareholder. Their claims include allegations concerning grant funds paid into the company’s bank account, the handling of those funds and the company’s overdraft. The allegations were not findings by the court.
Justice McMahon found that delay in the related cases was inordinate and inexcusable, particularly the 14 months taken to bring the applications after the bank refused to accept the statements of claim. But he concluded that the balance of justice favoured allowing those claims to proceed. He cited the seriousness of the allegations, the bank’s control of relevant records, the bank’s earlier use of company records in a claim against the liquidator, and the availability of three witnesses.
The three proceedings, numbered 2004/10127P, 2004/18559P and 2004/19389P, were consolidated under Order 49, Rule 6 of the Rules of the Superior Courts.
Flynn’s separate personal action had a different procedural history. Its plenary summons issued in March 2000, and five years passed between the memorandum of appearance and delivery of a statement of claim. The judge found that delay inexcusable and considered that the passage of time could significantly prejudice the bank’s ability to assess Flynn’s claims for personal injuries and stress. He refused to extend the time for the statement of claim in that action.
The judgment, delivered on 27 June 2008, addressed procedural applications. The court made no determination on the underlying claims against the bank.