| 13.2°C Dublin

Solicitors' insurer given go-ahead to pursue €4.9m Bloxham case

Close

Stock picture

Stock picture

Stock picture

A solicitors' insurer can pursue its application for judgment for €4.9m allegedly outstanding under a 2011 settlement with Bloxham stockbrokers, a High Court judge has ruled.

The January 2011 settlement was made in proceedings over losses suffered by the Solicitors Mutual Defence Fund (SMDF) after investing in a bond which fell 97pc in value.

SMDF, now R&Q Ireland Company Limited by Guarantee, claims it lost almost all of its then reserves of €8.4m due to negligence of Bloxham, which collapsed in 2012.

Its chairman, Patrick Dorgan, said in an affidavit it had to get a €5m guarantee from the Law Society to protect its position, ceased offering indemnity to solicitors in 2012 and is now in run-off. It ultimately had to fund a rescue package of up to €13m and finalised a run-off agreement with R&Q in November 2016.

The insurer applied earlier this year to the High Court for leave to re-enter proceedings, initiated in 2009 against Bloxham, to seek judgment for €4.9m.

Re-entry was opposed by lawyers representing five former Bloxham partners - Arthur Quinlan, Stradbrook Road, Blackrock, Co Dublin; Angus McDonnell, Ballymoney Park, Kilbride, Co Wicklow; Pramit Ghose, St Mary's Road, Ballsbridge, Dublin; Martin Harte, Idrone Terrace, Blackrock, Co Dublin; and Anne Barrett, Shrewsbury Park, Merrion Road, Ballsbridge.

They argued a High Court order of January 31, 2011, made when the settlement was announced, stated the proceedings were "struck out with liberty to re-enter" and the words "struck out" prevented any matter other than the original cause of action being re-entered.

Mr Justice Denis McDonald said the words "struck out with liberty to re-enter" signalled the court was to have a future role and the striking out of the proceedings was "not intended to terminate them entirely", he said.

Business Newsletter

Read the leading stories from the world of business.

This field is required


Most Watched





Privacy