Debt-related cases surge as recession bites

THE NUMBER of business and debt-related cases coming before the courts doubled last year, with the recession leading to a surge in possession orders and debt-recovery actions.

The Courts Service annual report shows that more than 36,000 civil cases were lodged at the Circuit Court last year, of which 60 per cent related to breach of contract and debt collection.

Overall, there was a 103 per cent increase in the number of cases for recovery of possession of land or premises in the High Court, while actions for breach of contract rose by 34 per cent.

A total of 238 repossession orders were granted, compared to 108 in 2007, and 3,808 cases related to recovery of debt. There were more than 200 applications to wind up a company, 41 to appoint an examiner, and eight bankruptcies.

The figures also show a 106 per cent jump in the number of applications to the High Court relating to the behaviour of solicitors, while the economic decline helps explain a 40 per cent fall in hotel licence applications and a 33 per cent drop in applications to renew pub licences.

Some 4,145 small claims were lodged last year, an increase of 11 per cent on the 2007 figure, with the biggest increase (from 107 to 220) in complaints against cleaners. About 45 per cent of small claims were received online.

Meanwhile, there were 1,379 applications for judicial review, a 25 per cent reduction on the 2007 figure. Some 57 per cent of these related to decisions of the Office of the Refugee Appeals Commissioner, the Refugee Appeals Tribunal and the Minister for Justice, but asylum-related applications declined by 30 per cent overall on 2007.

In his introduction to the report, Chief Justice Mr John Murray noted that economic and social changes were being reflected in the work of the courts.

He said economic expansion over the last decade or so had substantially altered the depth and breadth of the Irish economy “so that there has been a substantial growth in the volume of cases with serious commercial interests at stake.”

“Notwithstanding the downturn in the economy, that is likely to continue to be the case although that downturn will also bring other challenges arising from cases generated by its consequences,” he said.

“Societal changes will also continue to have an impact, such as population growth and the diversity within it.”