The High Court has vacated a default judgment against a driver in a disputed road crash claim and adjourned the plaintiff’s motion for judgment until the action is heard.
Mr Justice MacGrath allowed AXA Insurance Limited’s de novo appeal. He held that, having been joined as a co-defendant, AXA had standing to be heard on an interlocutory application that could affect how the defence was conducted and its potential indemnity obligations.
The underlying proceedings concern a collision on Headford Road, Galway, on 8 April 2014. The plaintiff alleges he was stopped at a junction when the first defendant’s vehicle struck his car from behind, causing injuries. The first defendant was insured by AXA.
AXA alleges in its defence that the collision was staged through collusion between the plaintiff and the first defendant. The plaintiff denies collusion. The judgment records that these allegations had not been proved and might never be proved; their determination is for the trial judge.
AXA was joined as a co-defendant by order of the County Registrar in October 2016. That order was not appealed. The plaintiff later sought judgment in default of appearance against the first defendant and objected to AXA being heard, relying on the Circuit Court Rules. The Circuit Court entered judgment against the first defendant, and AXA appealed.
The High Court found that AXA’s established participation in the proceedings carried standing on applications that could affect the conduct of the case or its potential liability. It also noted that the plaintiff had identified no particular prejudice from having the collusion issue dealt with before the Circuit Court rather than later in a possible application under section 76 of the Road Traffic Act 1961.
The court said its decision expressed no view on the strength of either the claim or the defence. It warned that if AXA’s allegations were not established, the insurer risked an award of aggravated or exemplary damages. The court did not decide whether the collision was staged or determine the underlying injury claim. It vacated the Circuit Court order and adjourned the default-judgment motion to the hearing of the action.