High Court Confirms That Third Party Rights Against Insurers In Ireland Are Restricted

The recent decision of the High Court in Michael Murphy v Allianz Plc [2014] IEHC 692 has provided further clarification to the scope of section 62 of the Civil Liability Act 1961 and, in particular, the necessary conditions which must be satisfied for its application. This decision follows a number of similar determinations of the High Court in recent years and confirms the following important principles in relation to section 62:

the insured, who has a policy of liability insurance, must be one who becomes bankrupt or dies (if an individual) or wound up (if a company) or dissolved (if a partnership or other incorporated association); liability should be established in the underlying claim against the insured and quantum assessed before the insurer is joined to proceedings or sued; and the courts will recognise a valid repudiation by an insurer. Previous Authorities

In Dunne v PJ White Construction Company [1989] ILRM 803 the Supreme Court considered it to be "an inevitable consequence" of section 62 that it...