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Persona Digital Telephony and Sigma Wireless granted Supreme Court appeal on litigation funding

By Rory Hanlon

Historic decision · Decision date:

Place: no local area assigned from the source.

The court will hear a direct appeal from the High Court on whether funding provided during a case breaches the rules on maintenance and champerty.

Persona Digital Telephony Limited and Sigma Wireless Networks Limited have been granted leave to appeal directly from the High Court to the Supreme Court. The Supreme Court delivered its determination on 25 July 2016.

The two companies are the applicants and appellants. The respondents are the Minister for Public Enterprise, Ireland, the Attorney General and Denis O'Brien. Michael Lowry is a third party, and his solicitors confirmed that he would not take part in the application.

The High Court gave judgment on 20 April 2016 and made its order on 12 May 2016. The companies then asked the Supreme Court for what is known as a leapfrog appeal, which bypasses the Court of Appeal.

For that, the Supreme Court has to be satisfied that the case raises a matter of general public importance or one of the interests of justice. It must also find exceptional circumstances that warrant a direct appeal.

It was argued in opposition that the application was fact specific and applied well-established principles, and that there was no urgency. The companies said the case raised a single legal question and was of immense public importance.

The Supreme Court found that the case turns on the application of the doctrines of maintenance and champerty. It said the issue may involve access to justice and the courts, and that it transcends the interests of the parties. It held that this met the test for an appeal from the Court of Appeal.

On exceptional circumstances, the court said that a second appeal to the Supreme Court would likely repeat the legal arguments made in the Court of Appeal. It concluded that efficient use of court time and resources did not justify two appeals.

Leave was granted on one issue, subject to case management. It is whether third-party funding provided during proceedings, rather than at the outset, to support a plaintiff unable to progress a case of immense public importance is unlawful under the rules on maintenance and champerty.

Sources

Source: Courts Service of Ireland. Read the linked determination for the court’s exact decision.

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