By Ruth Mercer
The High Court has ordered the plaintiffs in a major construction dispute concerning Montrose Student Accommodation in Dublin 4 to pay 70% of the costs incurred by two defendants in applications to amend their defences.
The underlying proceedings concern alleged defects in construction works carried out between 2014 and 2016. The US-registered plaintiff companies bought the property in 2017 and say defects were discovered during further works in 2020. They have sued a range of companies involved in the original project for alleged breach of contract, negligence and breach of statutory duty.
The present judgment does not determine those claims. It deals only with costs arising from amendment motions brought by the eighth defendant, Derek Tynan Associates Limited, and ninth defendant, Jeremy Gardner Associates Ireland Limited.
The plaintiffs initially opposed both applications, arguing among other things that they were brought too late and could cause prejudice through additional pleadings, discovery and expert work. The motions were scheduled for hearing on 18 December 2025.
However, shortly after 6.30pm on 16 December, the plaintiffs withdrew their opposition subject to conditions concerning costs. The amendments therefore did not require a ruling on their merits.
Mr Justice Barry O'Donnell held that, ordinarily, a party seeking to amend pleadings would bear the costs of the application and reasonable consequential costs. But he found that the plaintiffs' opposition had resulted in a more substantial hearing being prepared and that their concession came too late to generate a meaningful saving.
The court therefore awarded each of the two defendants 70% of its amendment-motion costs, with the remaining 30% representing costs that would have arisen even from an uncontested application.
The plaintiffs remain entitled to reasonable costs directly resulting from the amended defences, including an amended reply and, where properly required, further particulars or discovery. Execution of the costs orders was stayed until the main High Court proceedings are determined.