The High Court has ordered discovery of most documents sought in a dispute over The White Country Inn in Banteer, while directing that documents recording a separate insurance settlement be listed and preserved for now.
In a judgment delivered electronically on 13 November 2020, Mr Justice Barr ruled on an application concerning discovery by the first defendant, Shauna Crowley. The underlying proceedings were brought by The White Country Inn, a firm comprising two partners, against Ms Crowley and Ulster Bank Ireland Limited. The court did not determine the substantive claims between them.
The firm alleges that Ms Crowley failed to account for money connected with an Aviva life assurance policy and subsequent litigation, business profits since about 2005, and funds relating to loans from Ulster Bank. Those matters remain allegations in the proceedings.
The disputed discovery request concerned documents evidencing or recording the compromise of the separate “policy litigation”. Ms Crowley’s account, as summarised in the judgment, was that the policy expired in October 2010, that she was diagnosed with thyroid cancer in December 2011, and that she later sued Ulster Bank and Aviva over an alleged failure to advise her of an option to renew the policy without medical underwriting. She said that litigation was settled on confidential terms.
The firm argued that the settlement proceeds might belong to it because the policy benefit had been assigned to Ulster Bank as security for a loan to the firm. Ms Crowley opposed immediate disclosure, citing the settlement’s confidentiality and disputing the relevance of its terms to the firm’s claims.
The court said confidential documents should not be produced unless their disclosure is relevant and necessary. It noted that Ms Crowley had agreed to provide extensive discovery about the policy and litigation, including the policy documents, related communications, pleadings, affidavits and assessments of the litigation’s merits.
Mr Justice Barr concluded that the settlement terms would become relevant only if the trial judge first found that the litigation proceeds formed part of the firm’s assets. He therefore directed Ms Crowley to list the documents in discovery category 1(g) and preserve them, without disclosing the settlement terms, pending a further order from the trial judge.
On consent, the court ordered discovery of the other documents listed in the firm’s solicitor’s letter of 4 October 2019. Ms Crowley must swear an affidavit of discovery within six weeks of perfection of the order. The parties may make written submissions on the final terms of the order, costs and other matters within two weeks of delivery of judgment.