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High Court of Ireland Decisions |
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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> Hughes Engineering v. Moy Contractors [2000] IEHC 160 (25th January, 2000) URL: http://www.bailii.org/ie/cases/IEHC/2000/160.html Cite as: [2000] IEHC 160 |
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1. This
matter comes before the Court by way of Notice of Motion of the first named
Defendants seeking an Order dismissing the Plaintiffs claim against the first
named Defendant for want of prosecution and by reason of the inordinate and
inexcusable delay on the part of the Plaintiff in commencing and prosecuting
these proceedings.
The
Plaintiff is a limited company and is a specialist demolition contractor. The
first named Defendant was at all material times the main contractor for works
being carried out for and on behalf of the second named Defendant. The second
named Defendant are manufacturers with a facility in the industrial estate at
Shannon Airport. The third named Defendants are Consulting Civil and Structural
Engineers and the Plaintiff claims were at all material times acting in that
capacity in connection with a contract that was entered into on the 6 July 1988
for the demolition work at the second named Defendant's premises. It is claimed
that the first named Defendant were the main contractors for this work.
The
Plaintiffs claim may be summarised as follows: It is said that on the 6 July
1988 it entered into a contract to carry out demolition work at De Beer's
premises at Shannon Airport. This work involved the demolition of certain
concrete pits. The Plaintiff claims that this contract was made orally and
partly evidenced in writing by a letter of the 24 June 1988 together with
quotations in writing dated the 24 June 1988 and certain drawings (5 168/22)
dated the 19 June 1969. The price to be paid for this demolition work was
agreed at £35,500 stg.
The
Plaintiff claims that it entered into the contract on the basis of
representations which were made by the Defendants in relation to the quality
and depth of the concrete in the pits. The Plaintiff claims that it commenced
working on the contract on the 18 July 1988 but as a result of the initial
drilling work it was discovered that the concrete was considerably thicker than
had been represented by the Defendants. As a result it was found that the drill
bits ordered for the job were too short and that a number of other features
were not shown in the drawings. The Plaintiff says that it advised the third
named Defendant of the difficulties and further site meetings resulted. It says
that as a result of these site meetings a new arrangement was come to whereby
it was agreed that additional monies would be paid to carry out the work and
the claim is in respect of the sum of £77,576.13 stg, claimed to be due as
damages for breach of contract, negligence or misrepresentation or in the
alternative on a quantum meruit basis.
The
relevant dates insofar as the Pleadings are concerned are as follows:
|
6
July 1992
|
Plenary
Summons issued
|
22
March 1993
|
Plenary
Summons served
|
26
March 1993
|
Appearance
entered
|
2
March 1995
|
Plaintiffs
Notice of Intention to Proceed
|
5
September 1997
|
Second
Notice of Intention to Proceed
|
9
February 1998
|
Statement
of Claim Delivered
|
26
August 1998
|
First
named Defendants Notice for Particulars
|
15
September 1998
|
Replies
furnished
|
9
February 1999
|
Motion
for Judgment in Default of Defence
|
24
May 1999
|
Motion
for Judgment Re-entered
|
29
July 1999
|
Second
and third named Defendants succeed in claim to
|
|
strike
out action for want of prosecution
|
2. Accordingly,
the first period to consider is the period between the 15 August 1988 and the 6
July 1992 being respectively the date upon which the work was finished and the
date upon which the Plenary Summons was issued (or the 22 March 1993 when the
Plenary Summons was served).
Evidence
has been given by Mr Frank Hughes in his Affidavit of the 8 December 1999 that
the reason for the delay in serving the summons was that there were ongoing
negotiations in respect of his claim for the payment of extra work and he says
in his earlier Affidavit of the 7 July 1999 that he instructed his solicitors
to withhold serving the proceedings as a result of these ongoing negotiations
and meetings between the representatives of the Parties to try to resolve this
dispute.
I
accept that it is probable that this accounts for the initial delay and
accordingly I am of the view that this should be disregarded.
The
next period of delay is from the 22 March 1993 when the Summons was served up
to the 9 February 1998 when the statement of claim was delivered (approximately
5 years). The explanation which has been offered for this delay is in part to
be found in the Affidavit of Mr Donall King sworn the 8 December 1999. He says
that the claim was a complicated one and it required consultation to prepare
the Statement of Claim. These consultations were hampered because the Plaintiff
was abroad regularly for considerable periods of time and he says the member of
the staff in his office dealing with the file transferred from litigation to
conveyancing with the unfortunate consequence that the file was misplaced for a
considerable period of time. It is to be noted that not one but two notices of
intention to proceed were served. One in March of 1995 and another in September
of 1997. Even if it be correct that the file became temporarily misplaced and
that Notice of Intention to Proceed was served on it being discovered, this
still does not account for the period from March '95 to September '97 when the
second Notice of Intention to Proceed was served.
Counsel
for the Plaintiff has conceded, in my view correctly, that there was inordinate
and inexcusable delay on the Plaintiffs part during this period. Even if this
concession had not been made I am left in no doubt that having regard to the
initial lapse of time between the completion of the works in August of 1988 and
the service of the summons on the 22 March 1993 that this additional delay is
entirely unreasonable inordinate and inexcusable. I am satisfied that whatever
part of this blame may be accepted by the Plaintiffs Solicitors the Plaintiff
itself must carry responsibility by reason of the fact that Mr Hughes was out
of the country and apparently took no active steps to advance his claim.
Finding
that, as I do, I next pass to consider whether the first named Plaintiff has
suffered prejudice as a result of the delay and whether in the circumstances
justice requires that the action be struck out.
There
are two grounds relied upon by the first named Defendant. The first is that it
is submitted that two essential witnesses have died. Mr Andrew Bradley died on
the 1 March 1999 and Mr Michael Ledwidge on the 26 May 1997. He also says that
a third vital witness Mr Michael Barrett is now over 70 years of age and is in
poor health and is unlikely to be capable of giving satisfactory evidence. It
is submitted that all of these witnesses would have been available if the
action had been processed with due expedition and that as a result the first
named Defendant has suffered such prejudice as it would be unjust to allow the
action to proceed.
The
second point that is made that by Order of the 29 July 1999 the action against
the second and third named Defendants was struck out on the grounds of
inordinate and inexcusable delay. The first named Defendant says that its role
in this transaction was that of the main contractor and the role of the
Plaintiff was a subcontractor. In these circumstances it says that the primary
responsibility to pay the Plaintiff any sum due to it rests on the second named
Defendant and not on it. It submits that since this Defendant has been
discharged out of the action on the grounds of delay it is unjust and
unreasonable that the action should be permitted to proceed against the first
named Defendant since it leaves him carrying the full responsibility towards
the Plaintiff.
It
has been submitted on behalf of the Plaintiff that the first named Defendant
has not suffered any prejudice because while Mr Ledwidge and Mr Barrett both
participated in discussions at site meetings two witnesses are available namely
Mr Talbot and Mr Gus Treacy both of whom are available to the first named
Defendant and who will, presumably, be available to support whatever case the
first named Defendant may make.
I
have considered the Notice for Particulars and replies that have been delivered
in this case. Having done so I am left in no doubt that the evidence of Mr
Barrett and Mr Michael Ledwidge would, if available, be central to this entire
transaction. It appears that these gentlemen "made the oral contract" with the
Plaintiff on the 6 July 1988 (or at least this is claimed by the Plaintiff) and
again Mr Michael Ledwidge is alleged to have been the person who made the
alleged representations which formed the basis of the case. It is also alleged
that Mr Andrew Talbot represented the first named Defendant at this site
meeting.
With
regard to Mr Gus Treacy it is submitted on behalf of the first named Defendant
that he was not, as alleged, an employee of the first named Defendant but was
at all material times a Director of a company called Treform Limited who was
another subcontractor engaged to work on the site.
Mr
Andrew Bradley was the first named Defendant's Managing Director and is stated
by the first named Defendant to have been "the most senior member of the first
named Defendant involved in these matters. He was, I say and believe, involved
in a discussion between the Parties.
Accordingly,
in the time between the service of the summons and the delivery of the
Statement of Claim Mr Michael Ledwidge who, I have no doubt, would have been a
vital witness died. In the following 12 months Mr Bradley died. As a result the
Defendants will, at best, be able to call Mr Talbot in connection with this
involved matter, I am of the view that to be deprived of essential witnesses in
this way grossly prejudices the first named Defendant in the defence of their
action and am satisfied that justice requires that the order as sought to be
made.
With
regard to the second point advanced by the first named Defendant (namely that
since the action has been struck out insofar as the second and third named
Defendant is concerned they have been prejudiced) I do not accept this point.
It is open to the first named Defendant, in my view, to make a claim for
contribution or indemnity under the third party procedure if the Plaintiff
should succeed against it and if they are entitled to that relief. In my view
the Order made by Ms Justice Carroll on the 29 July 1999 is of no relevance.
In
my view the fact that site meetings are fully documented by minutes and the
fact that these minutes may have been relied upon at an early stage by
witnesses attempting to recollect the details of the transaction does not in my
view provide an answer to the first named Defendant's prejudice.
I
will accordingly make the Order sought.