The Court of Appeal awarded Promontoria (Arrow) Limited the costs of two appeals involving Richard Dineen, to be adjudicated if the parties could not agree the amount.
The costs ruling, delivered on 10 June 2021, followed Dineen’s unsuccessful appeal against an order adjudicating him bankrupt. That appeal rested on the argument that the debt stated in the bankruptcy petition was not a “liquidated sum” as required by the Bankruptcy Act 1988. The underlying appeal had been dismissed in a separate judgment, [2021] IECA 145.
Dineen asked the court to award him all or part of the costs. He argued that the appeal clarified an important area of law, that he had nothing material to gain because he had already emerged from bankruptcy, and that a further submission had been made without the court’s invitation or his consent, causing procedural unfairness.
Promontoria argued that the usual rule should apply: costs follow the event. It disputed that the appeal clarified unsettled law or that Dineen had nothing material to gain, pointing to consequences of bankruptcy identified in the earlier judgment. It also said it was proper to bring the recent decision in *Gladney v Tobin* to the court’s attention, and that Dineen had an opportunity to address that authority.
The Court of Appeal found no reason to depart from the normal costs rule. It said the earlier judgment applied established principles about “liquidated sum”; clarification of existing principles alone did not make a case one of public importance warranting a different costs outcome. The court also rejected Dineen’s argument that having nothing material to gain justified a departure, noting that some effects of adjudication persist after statutory discharge and that Dineen had described his appeal as a matter of “personal vindication”.
On the procedural fairness submission, the court said Promontoria had acted appropriately by drawing attention to a recent, relevant authority. It said parties’ legal representatives have an obligation to bring such authorities to the court’s attention and that Dineen had an opportunity to address the case but did not do so.
The court also recorded that Dineen had withdrawn a separate appeal against an order of Costello J. It directed that the costs of that appeal, as well as the unsuccessful bankruptcy appeal, be awarded to Promontoria, with the costs to be adjudicated if no agreement was reached.