A Warning To Credit Servicing Firms

Late last year Mr Justice Barrett delivered a warning to a credit servicing firm in the High Court that they were in "yellow card territory" as a result of their failure to expeditiously prosecute their case. The case (Promontoria (Aran) Limited v Patrick (orse Paddy) O'Connor and David O'Connor [2017 IEHC 780]) concerned the plaintiff seeking judgment against the second named defendant in respect of a personal guarantee given in February 2005. The proceedings commenced in March 2011 and were described by Barrett J. as proceeding "pretty much apace" until June 2015 at which point the loan facility, to which the guarantee in question was subject, was sold and a successful application was made to have Promontoria (Aran) Limited substituted as the plaintiff. No further action was taken by the plaintiff until 2017. In May 2017 an application was made by the second named defendant seeking a strike-out of the proceedings as a result of the delay on foot of the Rules of the Superior Court (1986). It was generally agreed between the parties that the applicable test in this instance would be that set down in Primor plc v Stokes Kennedy Crowley, which required that, for the order to be granted, the delay be inordinate and inexcusable and the striking out be necessary for...