A Supreme Court decision yesterday concludes lengthy and expensive litigation arising from a fire at a plastics factory in Bray, Co Wicklow, 17 years ago.
The court struck out an appeal against High Court findings brought by the Superwood group against three British insurers, arising from a compensation claim over the fire at the group's premises at Bray. Because Superwood could not provide €1.6 million as security for its appeal costs, the appeal should be struck out, the court directed.
The decision seems to have ended the long-running legal battle in the Irish courts between Superwood head Mr Richard Bunyan and the insurers which opposed his compensation claims.
These firms had applied to the Supreme Court for an order dismissing or, alternatively, striking out the Superwood appeal. The firms are Sun Alliance; Prudential; and Church & General. In 1998, the Supreme Court allowed a fourth insurance firm, Lloyds, to settle its dispute with Superwood for about £1.6 million.
The proceedings began in June 1989, when the Superwood group claimed damages for what it alleged was wrongful repudiation of insurance.
The insurers pleaded the policies were void on the grounds that Superwood had made a fraudulent claim and had breached a requirement to give all information as might reasonably be required to investigate and verify the claim.
In dismissing the Superwood proceedings, the High Court ultimately decided the firm had breached conditions to deliver to the insurers particulars of the claim and that those breaches led "inexorably to a finding of fraud".
The Supreme Court later overturned that decision and sent the matter back to the High Court to decide on losses.
At the second High Court hearing in 2001, Superwood was claiming almost £100 million in losses. The second hearing lasted 228 days and, at the end, Mr Justice Smyth found the Superwood claim had been grossly exaggerated. He awarded £314,940 to Superwood firms and granted permission to Superwood to appeal the findings.
In April 2002, the Supreme Court ordered Superwood to provide security for costs before proceeding with its appeal against the High Court decision. This amount was later fixed by the Master of the High Court at €1.6 million.
When the matter came before the Supreme Court last January, Dr Michael Forde SC, for Superwood, said his clients could not raise €1.6 million but could raise €600,000. He also asked for leave to amend the appeal by dropping many of the original 300 grounds of appeal, but leave was refused.
Yesterday, the Chief Justice, Mr Justice Keane, gave the Supreme Court's decision allowing the application by the three insurers to strike out Superwood's appeal on grounds of failure to provide security for costs in the amount fixed.
