H488
Judgment Title: Boliden Tara Mines Limited -v- Irish Pensions Trust Limited Neutral Citation: [2014] IEHC 488 High Court Record Number: 2006 362 P Date of Delivery: 30/10/2014 Court: High Court Composition of Court: Judgment by: Baker J. Status of Judgment: Approved |
Neutral Citation: [2014] IEHC 488 THE HIGH COURT [2006 No. 362 P] BETWEEN BOLIDEN TARA MINES LIMITED PLAINTIFF AND
IRISH PENSIONS TRUST LIMITED DEFENDANT JUDGMENT of Ms. Justice Baker delivered on the 30th day of October, 2014 1. This is an appeal by the plaintiff from a decision of the Master of the High Court made on 5th February, 2014, wherein he refused the application by the plaintiff for the extension of time for the delivery of a statement of claim in the within proceedings, and by which he dismissed the claim and awarded the costs of the proceedings and of the motion to the defendant. 2. The plaintiff is a company carrying on a mining business in Co. Meath. These proceedings relate to an employee pension scheme which has been in place for a long number of years and is operated through a trust. The defendant was at all material times the sole trustee of the pension trust scheme. 3. The present proceedings commenced by plenary summons issued on 30th January, 2006 and served on 24th January, 2007. The proceedings arose in the context of other, now concluded, proceedings had between the plaintiff and the defendant which sought rectification of the then pension trust deed and rules, and in particular a deed of amendment to the trust deed executed under seal on 19th October, 1999. 4. Rectification proceedings were commenced by the plaintiff against the defendant and a representative defendant seeking rectification of the deed of amendment and these proceedings were commenced in the Commercial Court on 6th day of April, 2006. The Supreme Court finally determined the appeal in those proceedings on 21st December, 2010, as a result whereof rectification of the deed of amendment was directed. 5. These proceedings seek damages from the defendant for negligence, breach of contract and breach of duty by reason of what is alleged to be the failure to draft a deed of amendment to the pension trust deed in accordance with the instructions and intentions of the plaintiff. The special damages are quantified in the sum of €2,300,000, calculated at €1,650,000 being the costs of bringing the rectification proceedings, and of allied proceedings seeking directions as to payments to certain employees, together with the sum of €650,000 paid by way of back entitlements and interim payments to these employees. The timeframe in these proceedings 7. It is further not argued that there was an agreement reached between the parties to these proceedings that the determination and prosecution of these proceedings would await the outcome of the rectification proceedings. It is, however, argued by the plaintiff that it was necessary to await the conclusion of the rectification proceedings in both the High Court and Supreme Court, as without the clarification ultimately afforded by those proceedings, it would not have been possible for the plaintiff to quantify its losses. It is further argued that the High Court and Supreme Court proceedings were a mitigation by the plaintiff of the loss and damages which it now seeks, and had the rectification proceedings not been brought, it seems likely that the special damages element would have been significantly larger, as the effect of the rectification was to reduce the pension obligations of the plaintiff to some of its employees. 8. It is clear that a conversation was had at the time of the service of the plenary summons in January 2007, between the solicitors acting for each party in the course of which the solicitors for the defendant, Messrs. A&L Goodbody & Co., were made aware that the issue of these proceedings was a form of "protective measure" and where it was said that the plaintiff did not intend to pursue these proceedings against the defendant "for the time being". No agreement was reached that the proceeding could be held in abeyance until the rectification proceedings had been brought to their conclusion, but the defendant was aware of the proceedings, and that they had been issued, initially at least, as a protective measure. 9. The Supreme Court delivered its judgment ordering rectification on 21st December, 2010 and it was not until 6th November, 2012, that a notice of intention to proceed was served on Messrs A&L Goodbody in accordance with the Rules of the Superior Courts. The almost two year gap between December 2010 and November 2012, is explained by the plaintiff as arising because commercial negotiations were being had with the administrators of the pension plan, albeit these discussions were not had with the defendant. 10. The solicitors for the defendant upon receipt of the notice of intention to proceed wrote on 21st November, 2012, acknowledging receipt of the notice and pointing out no steps had been taken in the proceedings since January 2006, a period at that stage of more than five years. The letter pointed out that no explanation had been furnished as to why the plaintiff was seeking to restart the proceedings after such a lengthy period and that the defendant was "considering its options, which include applying to strike out the proceedings for want of prosecution." All of the rights of the defendant were reserved by that letter. 11. By letter dated 17th December, 2012, some three weeks after the letter by which the defendant expressly reserved its position, Messrs. A&L Goodbody wrote a letter expressing surprise that the statement of claim had not been served despite the expiration of the period stipulated in the notice of intention to proceed and pointing out that more than ample time was available to the plaintiff to finalise the statement of claim. This letter is important and I set out the relevant extract:
In the meantime, all our client's rights in relation to the proceedings are fully reserved, including the right to apply to the High Court for an Order that the proceedings be struck out. " 13. A reply of 8th January, 2013, again made reference to the letter of 17th December, 2012, which contained an agreement for an extension of time and which reserved the position of the defendant. 14. The statement of claim was not delivered until 9th April, 2013, almost four months after the letter agreeing to the extension of time, and three months after the deadline, and that was done under cover of letter seeking a further extension, beyond that contained in the letter of 17th December, 2012. A reply of 15th April, 2013, from A&L Goodbody was sent to the effect that the firm was seeking instructions and was followed on 23rd April, 2013, by a letter refusing to consent to late delivery and pointing out that the proceedings had been subject to inordinate and excusable delay, and that the plaintiff had failed to comply with "the deadline previously set by our client". 15. An affidavit of Tadg Farrell, the Finance Director of the plaintiff was sworn in this application on 24th July, 2013, and it avers that the defendant was aware at all times as to why the proceedings were not progressed between issue and the date of the end of 2012 when they were reactivated by the service of the notice of intention to proceed. It suggests that the defendant was "fully aware of the within proceedings and entirely familiar with the factual background" and it is expressly stated that the defendant supported the plaintiff in the rectification proceedings. This particular fact does not seem to be in dispute and was central to the argument of the plaintiff in the course of the motion before me. Areas of factual dispute 17. An equally careful affidavit was sworn by in-house counsel of the defendant, Elizabeth Davis, who again avers to the fact that the plaintiff unilaterally made a decision to postpone or delay the prosecution of the proceedings and points out, more by way of argument than evidence, that an intention to do so ought to have been expressly communicated to the defendant and an agreement reached before the plaintiff could safely proceed on that basis. She does not say that the defendant firm were unaware of the existence of the proceedings, nor that they did not implicitly accept, whether as matter of fact or of logic, that the within proceedings had to await the conclusion of the rectification proceedings. Of more significance is the fact that she avers that the discussions or negotiations that were had between the plaintiff and Mercer (Ireland) Limited which took over the business of the defendant in 1999, were not had with regard to the litigation itself but rather with regard to the ongoing management of the pension trust, and accordingly that those negotiations could not be seen as a justification or rationale for the delay in the prosecution of these proceedings between the delivery in December 2010, of the Supreme Court judgment and November 2012, when the notice of intention was to proceed was served. Ms. Davis points to this two year period as being inexcusable, and points further to what she says was the clear onus on the plaintiff to move with reasonable expedition following the Supreme Court proceedings. The law
• An inordinate and inexcusable delay may still be excused, and the court may still exercise a discretion in favour of or against the continuation of the proceedings. • The balance of justice is the key to the exercise by the court of its discretion. • Personal blameworthiness is material. • Delay in seeking an order of the court, whether to dismiss the proceedings or to extend the time may be an ingredient in the exercise of the court's discretion.
(b) Whether on the facts of the case there is prejudice by virtue of the delay such that it is unfair to allow the proceedings to continue. (c) The conduct of both parties should be looked at. (d) Whether there has been any acquiescence on the part of the non delaying party. (e) Whether the delay gives rise to a substantial risk that it is not possible to have a fair trial or where it is likely to cause or to have caused serious prejudice to the defendant.
22. Clarke J. whose judgments in some earlier cases, particularly in Stephens v. Flynn [2005] IEHC 148, suggested a less benign approach and asked whether there should properly be a recalibration or tightening up of the criteria by reference to which the actions of the parties might be judged, expressed the view that the overall test remains the same, but pointed out that, while the principles remain the same, the application of those principles might require some "tightening up or recalibration" a phrase that he had used in the earlier judgment of Rodenhuis & Verloop BV v. HDS Energy Ltd [2011] 1 IR 611. The analysis 24. The question of whether the time for the delivery of a statement of claim should be extended, or whether proceedings should be dismissed for want of prosecution is never a matter that can be answered merely by a routine application of the principles or weighing of individual factors. The courts will look to the behaviour of both parties, the actual and potential facts of the delay, the specific prejudice and general prejudice that will be suffered or likely to be suffered. The courts do not take the view that the blame can easily always be laid at the door of one party only, the party who has delayed, and the court will look to the entire matrix of the facts. 25. Further, the Supreme Court has made this clear that a decision will be made in the context of not merely the principles of justice inter partes, but the administration of justice in general. Thus the courts jealously guard their own procedures and to avoid the development, or the perceived development, of what Clarke J. called in Comcast International Holdings Incorporated & Ors v. Minister for Public Enterprise & Ors "a culture of delay". The courts do not operate in a vacuum, and while a court must consider the question before it in the light of the facts before it, it must also have regard to the likely impact not merely of a decision of the court in an individual case, but also of the general approach that the court should take, and Clarke J. made the observation, with which I agree, in Comcast International Holdings Incorporated & Ors v. Minister for Public Enterprise & Ors that an unduly lax or indulgent approach by the court:-
27. I turn now to the factors and facts which I regard as relevant in the course of this litigation for the purposes of the exercise of my discretion in the light of the authorities. I will deal with these in sequence. The first factor: the institution of proceedings The second factor: the delay between issue and service The third factor: the response of the defendant The fourth factor: the existence of the other proceedings 32. The defendant argues that the absence of an agreement to "park" these proceedings is significant, and I accept that general proposition. But it seems to me to be relevant that in this particular case, that the "parking" of the litigation was done pending the resolution of other proceedings to which the defendant was a party and which the defendant had a significant and active involvement. Further, to borrow the language from para. 5.9 of the judgment of Clarke J. in Comcast the unorthodox action was "signalled contemporaneously and not contested" by the plaintiff and this again must weigh with my decision. 33. One difference can be noted between the instant proceedings and Comcast, namely that in Comcast, the court held, at para. 5.11 that there was no reasonable basis on which the plaintiff could be expected to have had sufficient information to formulate a statement of claim in any meaningful way. The defendant in this application makes particular argument in regard to this distinction and in particular points out that the plaintiff could have delivered a statement of claim as early as 2006 or indeed as early 2002, because the alleged negligence and breach of duty was identified by that date, albeit the precise extent of the losses which are claimed to have flowed therefrom did not crystallise until after the Supreme Court delivered its judgment in December 2010, and its decision as to the costs of the rectification proceedings in February 2011. The defendant argues that the plaintiff had sufficient information to deliver a statement of claim, which could have been amended and refined in the light of subsequent events. 34. I agree with this proposition, but if, as it seems from the case law to be, one purpose of the jurisprudence is to ensure the balance of justice between parties to litigation, and another, perhaps more in aid of the general public interest in the efficient use of court resources, is to avoid unnecessary costs and procedures, then the service by the plaintiff of what might be termed a "holding" statement of claim pleaded in general terms, and which might require to be amended in substance, necessitating an application to the court, and the service of further amended pleadings, is unnecessarily wasteful and not an effective use of court time or of that of the parties. Accordingly, I accept that it was not unreasonable for the plaintiff to await the conclusion of the rectification proceedings before preparing a statement of claim. The fifth factor: the letter of November 2012, the limited extension of time
(b) It must have been taken by the plaintiff as an indication, in precisely the same way as happened in Comcast, that the defendant was not then contemplating seeking to have the proceedings dismissed for delay. (c) The letter has to be seen as a broad acceptance of inaction, albeit an acceptance which indicated that the defendant patience was close to running out. (d) I must have regard to the weight of all of the factors and I give particular weight to the fact that competent, commercial solicitors as late as December 2012, on their clients instructions, agreed to a limited extension of time. 36. It is settled law that likely or actual prejudice to another party is a matter of significant weight in the discretion of the court in hearing an application to dismiss proceedings or extend time for the service of pleadings. The law does not go so far to say that there must be actual prejudice and it is sufficient that prejudice be likely or probable. Prejudice may be either specific or general and again this is clear from the case law. In Rogers v. Michelin Tyre Plc & Anor. [2005] IEHC 294, Clarke J. made it clear that the court would look at both general prejudice that would be expected to occur in any case in particular or specific prejudice, the actual prejudice which is found or argued to be found in an individual case. The prejudice, having regard to the characterisation of the jurisdiction of the court, is not merely specific to an individual case but also one which the court must exercise in the context of evolving jurisprudence and the desire to prevent a culture of delay in litigation and accordingly, both forms of prejudice are relevant to me, and actual prejudice does not have to be shown. 37. However, it has not been said that any likely witnesses are not able to give evidence, nor has it been said that any of those witnesses is no longer available to the defendant as a witness. At its height, what the defendant says, and very fairly says, is that these persons are no longer working for the defendant company and have retired, with all the attendant difficulties that might, but have not as yet, come to arise as a result. I take note of the test as applied by Hanna J. in the High Court case of Campbell-Sharp Associates Limited v. MVMBNI JV Limited & Ors [2013] IEHC 470 and the related proceedings, where the Court took note of the fact that there was no difficulty in maintaining the documentation and records, and taking witness statements and also noted that there was sufficient documentation available to refresh memories. I am of the view that in this case an even greater degree of refreshment of flagging memories, should they indeed be in any way fragile, has taken place in the recent past for the purposes of commercial proceedings in which both parties were involved, and where the defendant would have had every reason and opportunity to consider the documentation surrounding the execution of the deed of amendment. Summary and analysis 39. It is my view that the plaintiffs delay has been on the extreme end of the scale. Had the proceedings been progressed after the Supreme Court case had concluded, it would have been on a moderate, perhaps even on the slight or light, part of that scale. The conclusion of the Supreme Court case, or at best the determination of the costs application in that case, was a key date at which it was encumbent upon the plaintiff to progress the case. 40. The defendant has behaved in the most appropriate manner in this case but the fact remains that the defendant did not bring a motion to strike out the proceedings at the time when this might have been apposite, namely after the service of the notice of intention to proceed or after 5th January, 2013, the date of the deadline it set in correspondence. 41. The key determining factor in directing me in the exercise of my discretion is the letter of 17th December 2012. By that letter, the defendant's solicitor impliedly accepted that he did not consider that there was actual prejudice, and it could be said that that letter would suggest that the solicitor for the defendant did not even believe that the delay was inexcusable or inordinate, and that his main focus was to get the matter progressed to trial. 42. Accordingly I am of the view having weighed the factors that the plaintiff should be given a further short period of time to serve the statement of claim, but in doing so I believe I must facilitate the defendant in any application it might make for the case management of the proceedings with a view to bringing them in to a conclusion. I will hear counsel on such an application. Is the claim statute barred? |