1. The
Defendants are solicitors who are being sued for damages for professional
negligence. They have joined the Third Party to the proceedings. He is a
barrister. The Defendants contend that if the Plaintiff is successful in her
claim against them, they are entitled to be indemnified by the Third Party in
respect of any damages and costs which may be awarded against them.
Alternatively, they allege that they are entitled to a contribution from the
Third Party in respect of any such damages and costs.
2. The
Third Party brings this application
"for
an Order that the Third Party Notice issued on the 24th day of October 1997 in
this matter be struck out"
.
The correct application should be for an Order setting aside the Third Party
proceedings pursuant to Order 16 Rule 8(3) of the Rules of the Superior
Courts. I will treat this application as being one for such relief.
3. The
basis upon which the Third Party seeks the Order is the alleged failure on the
part of the Defendants to comply with the obligations imposed upon them by
Section 27(1)(b) of the Civil Liability Act, 1961 to serve the Third Party
Notice upon him as soon as reasonably possible.
4. This
action was begun by the issue of a Plenary Summons on the 21st February, 1995.
The Statement of Claim followed on the 3rd March, 1995. In it the Plaintiff
alleges that she retained the Defendants as her solicitors in September 1990 to
advise and act for her in the prosecution of a High Court action claiming
damages for personal injuries against her former employer, namely, the Board of
St. James's Hospital in Dublin. She alleges that the cause of action against
those employers arose from incidents which took place when she was a trainee
nurse at that hospital between July 1989 and December 1989. She complains that
the Defendants negligently issued proceedings in the High Court against the
Eastern Health Board. She says that they failed to serve the Plenary Summons
upon that Board. She also says that they failed to issue proceedings within
the statutory time against her true employer, which was not the Eastern Health
Board but rather the Board of St. James's Hospital. She is now statute barred
from bringing such proceedings against her employer.
5. Following
the delivery of the Statement of Claim, no step was taken on behalf of the
Defendants until the 14th March, 1996 when a Notice for Particulars was served
on the Plaintiff's solicitors. That was a period of one year and two weeks
following delivery of the Statement of Claim. Part of this delay is accounted
for by the fact that the underwriters indemnifying the Defendants did not
confirm cover until the 30th June, 1995. The delay between that date and the
service of a Notice for Particulars in March 1996 is explained in an Affidavit
of Eugene O'Sullivan, sworn on the 15th May, 1998. He said:-
6. Having
come on record in February 1996, the Notice for Particulars was served in the
following month. The relevant part of that Notice sought information as to the
date upon which it was alleged the Plaintiff advised the Defendants of the
identity of her employer against whom she wished her personal injuries action
to be commenced. That Notice for Particulars was not responded to until
January 1997 but meanwhile a number of important matters had occurred.
7. First,
the Defendants delivered their defence on the 22nd April, 1996. Three pleas
contained in it are relevant to this application. The first is set forth at
paragraph 11 and reads as follows:-
10. The
second development arose as a result of an exchange of correspondence between
solicitors for the Plaintiff and the Defendants. In a letter of the 10th
October, 1996 the Defendants' solicitors wrote, inter alia, as follows:-
11. That
letter was responded to by the Plaintiff's solicitors on the 22nd October,
1996. Insofar as it is material, that letter read:-
12. The
reply to the relevant part of the Notice for Particulars was furnished on the
14th January, 1997. I will reproduce it later in this judgment. It inter alia
made it clear that although the first named Defendant had been given an outline
of the Plaintiff's case, it was a Mr. James Murphy who was an associate of the
Defendants to whom full and detailed instructions were given.
13. At
this stage it is worth recording that the aforementioned James Murphy was, at
the time of the institution of these proceedings, no longer in the employment
of the Defendants, having moved to practice with a firm of solicitors in Co.
Mayo.
14. The
solicitor for the Defendants has sworn that he considered it essential to
obtain a detailed statement from Mr. Murphy prior to the bringing of any
application in relation to the Third Party. He wished to do that to
"ensure that the basis of the application was well founded"
.
He spoke with Mr. Murphy on the telephone in February 1996. He followed that
up with a letter to him on the 4th March, 1996 asking him to confirm the
circumstances of the involvement of the Third Party. He sent him a reminder by
letter of the 15th March, 1996. As he did not receive a reply by the 26th
March of that year, he requested the Defendants to use their good offices to
secure a detailed statement of the circumstances from Mr. Murphy. He again
requested the Defendants to address this by letter dated the 16th April, 1996.
On the same date he wrote a further letter to Mr. Murphy. That letter pointed
out that Mr. Murphy had promised in February 1996 to write to the Defendants'
solicitors in detail dealing with the issue of the joinder of the Third Party.
The letter pointed out that it was essential that the detailed response of Mr.
Murphy be furnished immediately or else the Defendants' solicitors would have
to advise the underwriters as to their remedies. Between April 1996 and
February 1997 the Defendants' solicitors made contact with Mr. Murphy by
telephone on a number of occasions, the last such occasion being on the 10th
October, 1996. Mr. Murphy was again written to on the 5th February, 1997. The
letter reads as follows:-
15. Ultimately,
Mr. Murphy supplied the Defendants' solicitors with a written account of the
matter on the 24th March, 1997. In accordance with the advice of Senior
Counsel, once that statement was to hand, the Defendants' solicitors proceeded
to arrange for the Affidavit grounding the application to join the Third Party
to be sworn. That Affidavit was sworn by the first named Defendant on the 7th
April, 1997. Two paragraphs of it are of significance. The first is paragraph
9. It reads:-
18. It
was not until the 25th July, 1997 that a Notice of Motion was issued seeking to
join the Third Party. It came on for hearing on the 20th October, 1997 and
Kinlen J. ordered the joinder of the Third Party. The Third Party Notice was
issued on the 24th October, 1997 and served on the 29th October, 1997. An
appearance was entered to it on the 19th January, 1998 and this Motion to set
aside was brought on the 21st January, 1998.
19. Two
other matters are worthy of mention. The first is that it is quite clear from
the Affidavits and the various exhibits which have been used on this
application that the Third Party signed a Plenary Summons issued on the 3rd
October, 1991 in which the Plaintiff sued the Eastern Health Board. That
document has been in the possession of the Defendants having been issued by
them. Furthermore, the Defendants' solicitor in his Affidavit of the 24th
February, 1998 averred as to his belief that the only issue as between the
Third Party and the Defendant was whether the Third Party advised the
appropriate Defendant for the action in question. He says that there was no
dispute but that the writ issued against the Eastern Health Board was signed by
the Third Party. Secondly, he exhibits a letter of the 26th September, 1991
from the Third Party containing the advice given by him that proceedings be
brought against the Eastern Health Board. That letter was addressed to the
Defendants and it also has been in their possession.
20. This
application is concerned with the circumstances outlined in Section 27(1)(b).
This section has been the subject of one decision of the Supreme Court and at
least three reserved decisions of the High Court. The Supreme Court decision is
Board
of Governors of St. Laurence's Hospital v. Staunton
[1990] 2IR 31). The High Court decisions are
Dillon
v. MacGabhann
(Morris J. 24th July 1995);
McElwaine
v. Hughes
(Barron J. 30th April 1997), and my own judgment in
SFL
Engineering Limited v. Smyth Cladding Systems Limited
,
which was delivered on the 9th May, 1997.
21. The
true construction to be given to Section 27(1)(b) of the Act was dealt with in
the judgment of Finlay C.J. (with whom Hederman and McCarthy JJ., agreed) in the
St.
Laurence's Hospital
case. He said at page 36:-
22. A
failure to serve a Third Party Notice on a person not already a party to the
proceedings as soon as is reasonably possible does not of course bar a
defendant completely from recovering an indemnity or contribution. But such a
claim would be subject to the discretion of the Court as to whether to allow it
to proceed or not.
23. The
net question which I have to decide in the present case is whether the service
of the Third Party Notice in the instant case was effected as soon as was
reasonably possible.
24. In
approaching this case I agree with the views of Barron J. in
McElwaine's
case that since the obligation is on the Defendants to serve the notice as soon
as reasonably possible, the onus of proof lies on them of showing that the
delay, if delay there was, was not unreasonable.
25. There
is possible conflict between the judgment of Morris J. (as he then was) in
Dillon's
case and that of Barron J. in
McElwaine's
case
as to whether the appropriate date which the Court ought to consider is the
date of service of the Third Party Notice or the date of issue of the
application to the Court for leave to issue such a notice. Barron J. says at
page 6 of his judgment:-
27. Insofar
as there is a conflict between these two views, I prefer that of Morris J.
since it accords precisely with the wording of the section. In the present
case, the date of issue of the Notice of Motion for leave to commence the Third
Party proceedings was the 25th July, 1997, whilst the Third Party Notice was
not served until the 29th October of that year. It is this latter date which I
must take into account.
29. I
also agree with the views expressed by Barron J. to the effect that while a
Court should not construe
"as
soon as is reasonably possible"
too
liberally, it should not at the same time be too astute to set aside a Third
Party Notice. He says:-
30. Finally,
it is accepted that I am not, on this application, concerned with any question
of prejudice arising as a result of the delay in applying for liberty to join
the Third Party. This seems to follow having regard to the interpretation
given to the relevant statutory provision by Finlay C.J. in the
St.
Laurence's Hospital
case.
31. On
the basis of these authorities, therefore, and adopting the degree of
flexibility contemplated by the judgments of Morris J. and Barron J., I turn to
consider the delay in this case and its explanation.
32. Order
16 of the Rules of the Superior Courts governs Third Party procedure. Order
16.1(3) provides:-
33. This
rule requires the application to be made not within 28 days from the delivery
of a defence but within 28 days from the time limited for so doing. That time
is fixed by Order 21 of the Rules of the Superior Courts. In the present case
the defence ought to have been delivered within 28 days of the date of delivery
of the Statement of Claim. It follows that in order to comply with the Rules
of Court, the application to join the Third Party in the present case ought to
have been made within 56 days of the 3rd March, 1995. In fact the application
was not sat down for hearing until the 25th July, 1997, almost two years and
five months after delivery of the Statement of Claim.
34. The
Third Party places reliance upon the Defendants' failure to comply with the
provisions of Order 16 Rule 1(3). He is of course entitled to do so. However,
experience indicates that only a tiny percentage of applications to join a
Third Party are made within the time prescribed by this rule. It would, in my
view, require very exceptional circumstances for the Court to accede to an
application of this sort if the only complaint related to a failure to observe
strict compliance with the provisions of this rule. In the present case of
course the Third Party can, prima facie, make complaint of matters which go far
beyond a technical non-compliance with the provisions of this rule.
35. The
first substantial period of delay is that between the delivery of the Statement
of Claim on the 3rd March, 1995 and the decision of the Defendants'
underwriters confirming that they were on cover. That decision was not made
until the 30th June, 1995. No explanation has been offered to the Court as to
why that decision should take as long as it did. Whilst it is unlikely that
the underwriters will win any awards for speedy decision-making, nonetheless it
does not appear to me that this delay of itself could be regarded as
unreasonable.
36. The
next period of delay is one which arises between the making of that decision on
the 30th June, 1995 and the service of a Notice for Particulars on the 14th
March, 1996. The reason given for this delay was the apparent non-filing or
misfiling of a fax message from the insurers instructing the Defendants'
solicitors to serve notice of change of solicitor. That notice of change was
served in February 1996. The non-filing or misfiling of the insurers' fax is
akin to the human error which occurred in the case of
Dillon
v. MacGabhann
when a motion listed in the Court list was missed and was struck out. It is
unfortunate that these errors occur but occur they do. Given the approach
which I have indicated I propose to take in examining the facts of this case in
the light of the statutory obligation, I would not set aside these Third Party
proceedings if the only delay that fell for consideration was that between the
delivery of the Statement of Claim and the service of the Notice for
Particulars. Whilst that delay is significant, it does not, in all the
circumstances, appear to me to be unreasonable.
37. The
defence was delivered on the 22nd April, 1996. I have already set forth the
three pleas which are contained in it and which are relevant to this
application. Those pleas make it clear that the Defendants were alleging
negligence and breach of duty on the part of the Third Party in respect of the
advice which he gave concerning the institution of proceedings against the
Eastern Health Board. The defence was signed by leading and junior Counsel.
It should be noted that these are not the Counsel who appeared on the hearing
of this Motion.
38. The
insertion of these pleas in the defence suggests to me that at the time of its
delivery the Defendants were possessed of sufficient information to justify the
inclusion of such a plea. An allegation of professional negligence is a
serious matter and ought not to be made unless there are reasonable grounds for
so doing. I do not believe that either Counsel who signed the defence would
have done so unless they were satisfied that such grounds did exist. Given
therefore that the Defendants were in a position to make such a plea as far
back as April 1996, what is the explanation proffered for the delay between
that date and the service of the Third Party Notice on the 29th October, 1997?
39. Two
explanations are given. The first is that the Defendants had to await the
delivery of replies to particulars before they could move to join the Third
Party. These particulars were sought in March 1996 but were not responded to
until January 1997. The particular which is relied upon as excusing the delay
in the present case is that which is sought at paragraph 2 of the notice of the
14th March, 1996. That in turn seeks particulars of matters which are pleaded
at paragraph 3 of the Statement of Claim. Paragraph 3 of the Statement of
Claim reads:-
41. The
reply to this query which is contained in a letter of the 14th January, 1997 is
as follows:-
42. I
find it difficult to ascertain the information contained in this reply which
added to the Defendants' state of knowledge so as to make possible what had
previously not been possible, namely, the preparation of the application to
join the Third Party. I do not see that these replies materially altered the
Defendants' state of knowledge from what it had been before in respect of any
matter of relevance concerning the joinder of a Third Party. Accordingly, on
this aspect of the matter I do not consider that the Defendants have provided a
satisfactory explanation for the delay in question.
43. The
second reason which is given for the delay was the necessity to obtain a
statement from Mr. Murphy prior to the bringing of an application to join the
Third Party. Mr. Murphy is not a defendant in the proceedings. He may be a
witness. The Defendants' present solicitors came on record in February 1996.
The solicitor having carriage of this action spoke to Mr. Murphy on the
telephone in mid-February of that year. He wrote to him on the 4th March, 1996
asking him to confirm the circumstances of the involvement of the Third Party.
I have already set forth the attempts made to obtain a statement from Mr.
Murphy. Ultimately, he furnished a written account of the matter on the 24th
March, 1997. On receipt of that, arrangements were made for the swearing of
the Affidavit grounding the application to join the Third Party.
44. The
Defendants contend that it would have been improper for the application to join
the Third Party to be made prior to obtaining the written statement from Mr.
Murphy. They were not in a position to compel him to make such a statement
since he is not a party to the proceedings.
45. In
this regard reliance is placed upon the statement of Barr J. in
Reidy
v. National Maternity Hospital
(judgment 31st July, 1997) where he said:-
46. I
have no difficulty in endorsing the views of Barr J. that the commencement of
proceedings alleging professional negligence is irresponsible and an abuse of
the process of the Court unless the persons advising such proceedings have
reasonable grounds for so doing. In the
Reidy
case, expert testimony was required. That is not the case here. Mr. Murphy,
if he is to be a witness, will be one as to fact. He did not prove very
co-operative. But it does not appear to me that the Defendants were justified
in waiting for Mr. Murphy to co-operate before moving the application for the
joinder of the Third Party. This is particularly so in circumstances where
they were in a position to make the pleas which they did concerning the Third
Party as far back as April 1996. I do not think that this case can be equated
with circumstances where a moving party has to await an expert's opinion before
knowing whether or not there are reasonable grounds for commencing a
professional negligence claim. In my view, those grounds were apparent to the
Defendants when they delivered their defence. I am fortified in this by the
response which was made in the letter of the 10th October, 1996 by the
Defendants' solicitors. I have already reproduced the relevant parts of that
letter earlier in this judgment.
47. Furthermore,
the Defendants had at all material times the written advice of the Third Party
as to the naming of the Eastern Health Board as Defendant and the Plenary
Summons issued against that body signed by the Third Party.
48. Given
that state of knowledge, it does not appear to me that the further delaying of
the application to join the Third Party until after either a Notice for
Particulars was replied to or Mr. Murphy's statement was obtained was
reasonable in the circumstances.
49. There
remains of course a further delay. The Affidavit to seek to have the Third
Party joined was sworn by the first named Defendant on the 7th April, 1997.
Yet it was not until the 25th July, 1997 that the Notice of Motion seeking to
join the Third Party was set down for hearing with a return date of the 20th
October, 1997. No explanation at all has been furnished for this further delay.
50. I
am not satisfied that the explanations which have been furnished for the delay
in the commencement of these Third Party proceedings justify it. In particular
I do not accept that it was either improper or impossible to move the
application for the joinder of the Third Party without the replies to
particulars or the statement from Mr. Murphy. On the contrary, I take the view
that at the time when they delivered the defence making these specific
allegations of professional negligence against the Third Party, the Defendants
had sufficient information to warrant the application being brought at that
time. Certainly, by October of that year, having regard to the letter from
which I have quoted, they appear to have been in little doubt on the question.
51. In
these circumstances, I must conclude that the Third Party Notice was not served
as soon as reasonably possible. Having so concluded, it is clear from the
judgment of the Supreme Court in the
St.
Laurence's Hospital
case which I have already cited that
"the
only right of a person to obtain from the High Court liberty to serve a third
party notice ..... is a right to serve a third party notice as soon as is
reasonably possible. A defendant in an action seeking to claim contribution
against a person who is not a party to the proceedings cannot serve any third
party notice at any other time, other than as soon as is reasonably possible".
52. Such
being the state of the law it follows that the Third Party proceedings in this
case must be set aside and I so order.