The Supreme Court has ruled that defendants sued over a 1995 road collision at Furbo Bridge, County Galway, were entitled to rely on the Statute of Limitations despite lengthy settlement correspondence from their insurer.
Desmond Ryan was riding a motorcycle when he was involved in a collision with a car on April 26, 1995. His solicitors notified the defendants the following month and claimed damages for his injuries and damage to the motorcycle.
Hibernian Insurance subsequently sought information about the accident and Ryan's injuries. Over the following years, the insurer repeatedly asked whether his solicitors were ready to discuss settlement, including possible meetings during Galway High Court sessions.
Ryan's proceedings were not issued within the applicable three-year limitation period. He argued that the insurer's conduct had induced his solicitors to delay and that the defendants should therefore be prevented, or estopped, from relying on the statutory time bar.
The High Court accepted that argument. The Supreme Court did not.
Chief Justice Ronan Keane held that correspondence marked “without prejudice” could be examined for the limited purpose of deciding whether a party had been induced to delay proceedings. But the correspondence in this case did not contain the clear and unambiguous assurance required to prevent reliance on the limitation defence.
The insurer's willingness to negotiate did not amount to an admission of liability. Nor did settlement of the motorcycle damage claim with Ryan's own insurer justify an inference that liability for his personal injuries claim had been conceded.
The court stressed that even an express admission of liability will not necessarily justify allowing a limitation period to expire unless there is some representation making it reasonable to believe proceedings need not be issued in time.
The Supreme Court allowed the appeal and substituted an order confirming that the defendants could rely on the Statute of Limitations.