Yolanda Ltd appeal dismissed in breach of contract claim

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

Yolanda Ltd’s appeal against the High Court’s refusal to dismiss D & L Properties Ltd’s proceedings was dismissed by the Court of Appeal on 1 February 2017. Mr Justice John Edwards held that the High Court was correct not to strike out the proceedings as bound to fail.

The proceedings concern claims for damages for breach of contract, breach of duty, including statutory and fiduciary duty, misrepresentation and conversion; alternatively, repayment of money with interest. They arise from a joint venture agreement allegedly entered into on or about 4 November 2008 for a London property development.

The sum claimed was €9,739,880, comprising €2.2 million allegedly advanced and €7,539,880 in alleged compound interest accrued before proceedings were issued. Further interest was also claimed.

Yolanda Ltd’s defence pleaded that it received €2.2 million under an agreement with Derek O'Leary, rather than D & L Properties Ltd. Alternatively, it maintained that any agreement with the company, which it denied, was unenforceable under section 2 of the Statute of Frauds (Ireland) Act 1695.

The dismissal motion was dated 29 June 2015. On 20 October 2015, the High Court (McGovern J) dismissed the application. The judge found that the pleadings could not be concluded to be frivolous or vexatious and was not satisfied that the claim was bound to fail.

For the dismissal application, central factual disputes had to be resolved in the plaintiff’s favour. The High Court considered evidence suggestive of a note or memorandum sufficient to resist the motion, although it described that evidence as tenuous. It took a similar view of evidence suggestive of part performance.

Yolanda Ltd confined its appeal to the refusal to strike out the proceedings under the court’s inherent jurisdiction as frivolous, vexatious and bound to fail because of alleged non-compliance with section 2 of the Statute of Frauds.