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Supreme Court of Ireland Decisions |
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You are here: BAILII >> Databases >> Supreme Court of Ireland Decisions >> Hot Radio Co. Ltd. t/a Pulse FM v. Independent Radio and Television Commission [2000] IESC 55 (14th April, 2000) URL: http://www.bailii.org/ie/cases/IESC/2000/55.html Cite as: [2000] IESC 55 |
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1. There
are two appeals before the court this morning, both arising out of a decision
by the first named respondent in the two sets of proceedings, that is the
Independent Radio and Television Commission, to grant licences in purported
pursuance of the functions of that body under the relevant legislation. The
decision of the IRTC in each case has been challenged by one of the
disappointed applicants, if I can so call them, and those proceedings are
listed for hearing in the early part of next term. In the first of them the
High Court (Mr. Justice Kearns) ordered the applicant company, the disappointed
applicant in that case, and the applicant for judicial review, who it should be
said has
2. The
application before Mr. Justice Kearns was for an order for security for costs
pursuant to the relevant provision in the Companies Act 1963 and in the first
case with which I am dealing, which I shall call the Hot Radio Company Ltd.
case, he concluded that the respondents (IRTC) and the notice party were
entitled to an order for security for costs and he measured the costs at what
broadly speaking represented the full estimated amount of the costs with
certain refinements into which it is not necessary to go into at this stage. It
is clear that for the purpose of this judgment it may be taken that he
effectively measured the costs at what would be the estimated costs of the
proceedings. That decision has been appealed to this court and I would propose
to deal with that case first.
3. There
is of course no doubt as to the jurisdiction of the court to order security for
costs in a case of this nature. It derives from s. 390 of the Companies Acts,
1963 which provides that where a limited company is a plaintiff in any action
or other legal proceeding any judge having jurisdiction in the matter may, if
it appears by credible testimony that there is reason to
4. Mr.
Clarke, on behalf of the applicants, however, argues that the learned trial
judge in arriving at that judgment took into account certain matters which he
should not have taken account of and the matter to which I think he really
takes exception and is really at the heart of this debate this morning is the
finding by the learned trial judge that, while the company itself has no assets
the persons who are associated with the company and who are effectively,
although not in legal theory, of course, the applicants, have assets. The trial
judge considered that that was unjust.
5. It
is clear from other decisions of this court and of the High Court that the
judge to whom such an application is made has a discretion, as is clearly
6. One
consideration which the court has had regard to in a number of cases, but I did
not understand Mr. Clarke pressed in this case, was that where the insolvency
of the company in question is the result of the conduct alleged against the
defendant, then indeed the defendant may not obtain security for costs which
would have the effect, it may be, of stifling the very action to remedy the
injustice which he himself has brought about. That clearly does not arise in
this case. The applicant was already a shelf company at the time the
application was made, and it is not suggested for a moment that that is the
responsibility of the IRTC. If the applicant company is successful in these
proceedings and the decision of the IRTC is set aside, it is not suggested that
the applicant would then and there be entitled to the licence which they wish
to obtain. They will not, because there will have to be then a competition and
it may or may not be that they will get a licence. This is not a case in any
sense analogous to the cases where the conduct of the defendant has caused the
very impecuniosity which has led to the company concerned instituting the
proceedings. The position in this case really comes to this: that the persons
7. Now
in cases involving planning considerations, it is undoubtedly the case that
this court has on more than one occasion indicated that the court would be
concerned that in the case of decisions of public importance concerning
planning and development and the environment, affecting the interests of the
public in many ways, bodies who are formed solely for the purpose of protecting
the public interest, voluntary associations, should not be unduly and unfairly
impeded in bringing challenges to the decisions of bodies such as An Bord
Pleanála or planning authorities before the courts. That may also arise
in other branches of the law but this is plainly not such a case because, while
undoubtedly the public have a considerable interest in seeing that the
provisions of this type of legislation are operated in a fair, and as people
like to say nowadays, in a transparent manner and which it is very right and no
one would question, I think, that it is anything but appropriate that persons
in the position of the disappointed applicants in this case should, if they
8. That
brings me on to the second aspect of the appeal, because, as I have said, the
learned High Court judge fixed a sum which to all intents and purposes
represented the estimated cost of the full hearing. Of course, it is the case
that where the court is exercising its inherent jurisdiction as to security for
costs in a case not affected by the provisions of the 1963 Act, the normal rule
adopted by the courts has been to fix the costs at approximately one-third of
the estimated costs of the defendant in the proceedings. In the present case,
as I have said, the learned trial judge fixed it on the basis that what the
section says is
“sufficient
security”
is
to be given for those costs. In support of that, the IRTC
9. It
is, of course, right to point out that the passage from the judgment of that
eminent judge in that case may be regarded as obiter since he was in effect
drawing attention to the provisions of s. 390 in order to arrive at an
appropriate interpretation of the then Rules of the Superior Courts because
that was a case not brought under s. 390. However that may be, undoubtedly some
support for Mr. Justice McCracken’s view can be derived from what Mr.
Justice Kingsmill
10. Moore
had to say in that case but he also indicated that he was not satisfied to
follow the approach taken by the English Court of Appeal in a case on which the
appellant relies here, that is the case of
In
Novaro Displays Plc. .v. Corporate Broking Service Limited
.
11. It
is obvious from the head note in that case that in that case a matter which
weighed significantly with the court was the fact that there was a danger in
the view of the judge who heard it at first instance that the claim would be
stifled if security for costs at the full measure was ordered and the head note
expressly says he ordered security in a sum which judge considered would not
stifle it and that he was entitled so to do. Then the court went on to hold
that sufficient security did not mean complete security and that is undoubtedly
at odds with what Mr. Justice McCracken held: it meant security sufficient in
all the circumstances to be just.
12. In
this case, I am satisfied that even applying those criteria, even assuming that
view of the law is to be preferred to the view expressed by Mr. Justice
McCracken, it was just in this case to order the full measure of security
because there is no suggestion that the action would be stifled by the award of
security for costs in the sum actually awarded as opposed to awarding security
for costs in the more conventional measure of one-third. On those