The High Court allowed Smith Foy & Partners to come off record as solicitors for Eir in a personal injuries action, on the condition that the terms of a valid and binding indemnity agreement between Eir and Actavo continued to be observed.
Mr Justice Max Barrett delivered the judgment on 3 May 2019. The application was opposed by Ronan Daly Jermyn, solicitors instructed by Eir but not yet on record. They sought terms concerning costs to date if Smith Foy were permitted to withdraw.
The court recorded that Barry Connolly issued his personal injuries summons on 31 October 2017. Corrigan & Corrigan entered an appearance for Eir on 21 December 2017. In February 2018, Smith Foy, acting for Actavo, offered to indemnify Eir in respect of Connolly’s claim and to come on record for Eir. Corrigan & Corrigan replied that they could take over the proceedings and would bear their own costs to that point. Smith Foy served a notice of change of solicitors on 9 March 2018.
The judge noted that, relying on the indemnity relayed by Smith Foy, Eir did not seek replies to particulars or enter a defence, understanding that Smith Foy would protect its interests. The correspondence leading to the indemnity was a protracted chain, and the summons set out specific allegations against Eir. The court said it was unclear what new information, if any, had emerged between December 2017 and Smith Foy’s application to cease acting, and saw no reason why matters handled after the indemnity could not have been dealt with before it.
The court said the only issue before it was costs to date. It saw no reason to compel Eir and Smith Foy to continue their arrangement. It nevertheless held that the indemnity was a valid legal agreement which Actavo could not unilaterally repudiate or rescind. Smith Foy was therefore permitted to come off record subject to that agreement being observed at all times. The judgment did not determine Connolly’s personal injuries claim or make findings on its allegations.