Judgment: 2021-03-03 · Court archive

High Court refuses most of English’s bid to strike out HKRME liabilities particulars

The court allowed HKRME to pursue several disputed liability items at a later account and enquiry, but ordered it to explain its 8% interest claim within four weeks.

High Court, Commercial · [2021] IEHC 142

Who, what, where, when and why

Who
  • HKR Middle East Architects Engineering LLC
  • Jeremiah Ryan (Plaintiff)
  • Barry English (Defendant)
What

The court allowed HKRME to pursue several disputed liability items at a later account and enquiry, but ordered it to explain its 8% interest claim within four weeks.

Where

No place detail is included in this summary.

When

Judgment:

Why

Reasons reported in the judgment

The application arose after a May 2019 judgment found that HKRME had made substantial payments to Mr English through Sunvit for fictitious introduction services, and that he had been unjustly enriched. The judge said the claim as pleaded then supported relief only for HKRME’s unpaid liabilities, which had been estimated at about AED 8.7 million. The court ordered an account and enquiry to establish the unpaid and lawful liabilities. It did not decide the amount recoverable.

The High Court has refused most of Barry English’s application to strike out updated particulars of liabilities claimed by HKR Middle East Architects Engineering LLC (HKRME). The court directed HKRME to explain its claim for interest and why it was absent from an earlier schedule. The underlying account and enquiry into HKRME’s unpaid and lawful liabilities has yet to determine which amounts, if any, are due from Mr English.

The application arose after a May 2019 judgment found that HKRME had made substantial payments to Mr English through Sunvit for fictitious introduction services, and that he had been unjustly enriched. The judge said the claim as pleaded then supported relief only for HKRME’s unpaid liabilities, which had been estimated at about AED 8.7 million. The court ordered an account and enquiry to establish the unpaid and lawful liabilities. It did not decide the amount recoverable.

HKRME’s December 2019 particulars included a loan it said Jeremiah Ryan had made to the company, an intercompany balance allegedly owed to HKRDMCC, a claimed salary for Mr Ryan, additional sub-consultant fees and other liabilities. Mr English argued that several items went beyond the pleaded case or had been inadequately explained, including why they were missing from a 2017 schedule.

The judge held that the loan, HKRDMCC balance, claimed salary and other disputed items could not be ruled outside the pleaded claim at this interlocutory stage. Whether they are unpaid, lawful liabilities and whether they should be paid by Mr English must be determined at the account and enquiry. The judge said Mr English could challenge their credibility and raise defences there. The court also said he could seek discovery concerning the updated claims under the usual procedure.

The updated particulars no longer sought payment for Green Cube invoices. The judge accepted HKRME’s explanation that they were excluded because the May 2019 judgment had found those invoices fabricated.

HKRME claimed €658,894 in interest at 8% on several categories of liability. The judge said the basis and rate required explanation and ordered HKRME to provide it within four weeks, including why interest was not in the 2017 schedule. The interest claim was not struck out.

The application was otherwise refused. The judge expressed only a provisional view that the application’s costs should be reserved until the account and enquiry concludes. Either party could seek a different costs order within 14 days. The judge also said a request to revisit the May 2019 ruling limiting the unjust-enrichment claim would need to be raised formally on notice; no reconsideration was granted in this application.

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