Judgment: 2021-03-19 · Court archive

Court of Appeal reduces AIB judgment by €881.72 and awards bank appeal costs

The court substituted a revised judgment of €465,875.91 after AIB waived surcharge and related compound interest. It awarded AIB its appeal costs, excluding costs tied to the affidavit calculating those deductions.

Court of Appeal · [2021] IECA 77

Who, what, where, when and why

Who
  • Allied Irish Banks plc (Plaintiff)
  • Mary O’Callaghan (Defendant)
  • Robert Haughton (Judge)
  • Marie Moylett
  • Herbert Kilcline
What

The court substituted a revised judgment of €465,875.91 after AIB waived surcharge and related compound interest. It awarded AIB its appeal costs, excluding costs tied to the affidavit calculating those deductions.

Where

No place detail is included in this summary.

When

Judgment:

Why

Reasons reported in the judgment

The court rejected those submissions. Haughton said the appellants chose to raise the issues and lost, and found no exceptional public importance warranting a costs award in their favour. He described the surcharge issue as minor in the context of the overall debt and said it was not in the Notice of Appeal or the appellants’ written submissions. He found no conduct by AIB warranting an apology or criticism.

The Court of Appeal substituted a judgment of €465,875.91 against Thomas and Mary O’Callaghan, reducing the High Court figure by €881.72 after Allied Irish Banks plc waived surcharge interest and compound interest arising from those surcharges.

The costs judgment, delivered electronically by Mr Justice Robert Haughton on 19 March 2021, dealt with the outstanding amount and appeal costs following the dismissal of the O’Callaghans’ appeal in November 2020. The court affirmed the High Court order in all other respects.

An affidavit from AIB manager Marie Moylett recalculated the debt on three accounts. It deducted surcharge interest of €19.15 and €381.74 on two accounts, plus related compound interest of €1.35 and €479.48. The combined deductions were €881.82, producing the revised figure of €465,875.91 from the original €466,757.63.

The appellants’ solicitor, Herbert Kilcline, filed a replying affidavit. It raised issues including the detail in the summary summons, account terms, AIB’s power to apply surcharge and compound interest, and earlier claims of entitlement to surcharge. Haughton said those matters were not relevant at this stage, which was limited to calculating the judgment after AIB’s waiver. Kilcline did not dispute Moylett’s figures, and the court accepted them.

On costs, AIB sought its appeal costs, arguing it had succeeded on the substance of the appeal and that the surcharge adjustment was modest. The appellants argued for their own costs or no order, saying they had raised issues they had to pursue and that the case concerned matters of exceptional public importance. Kilcline also sought an apology or an expression of disapproval of AIB’s conduct.

The court rejected those submissions. Haughton said the appellants chose to raise the issues and lost, and found no exceptional public importance warranting a costs award in their favour. He described the surcharge issue as minor in the context of the overall debt and said it was not in the Notice of Appeal or the appellants’ written submissions. He found no conduct by AIB warranting an apology or criticism.

AIB was awarded its appeal costs, including the costs of its submission on costs. If the parties could not agree the amount, it would be adjudicated by a legal costs adjudicator. The order excluded costs associated with preparing and filing Moylett’s affidavit on surcharge and compound interest.

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