No need for security for costs of appeal over dismissal of damages claim

Martin and John Gerard Corcoran had sued Neagu Alexandru over collision in July 2012

Ms Justice Eileen Creedon in the High Court  said part of the test for making security for costs orders was that the claimant must live outside the jurisdiction but, because Irish court orders can be readily enforced within EU states, the Aviva application for security fell at the first hurdle. File photograph: Getty Images
Ms Justice Eileen Creedon in the High Court said part of the test for making security for costs orders was that the claimant must live outside the jurisdiction but, because Irish court orders can be readily enforced within EU states, the Aviva application for security fell at the first hurdle. File photograph: Getty Images

Two brothers whom a judge said were behind a staged traffic-accident scam will not have to provide security for the costs of an appeal against the dismissal of their claim for damages arising out of the alleged accident.

Martin and John Gerard Corcoran, originally from Galway and now living in London, sued Neagu Alexandru, from Romania, over a collision at a roundabout near Blanchardstown in July 2012.

The Corcorans and five of their cousins, all with addresses near the brothers’ address of Lynton Close halting site in London, claimed against Mr Alexandru and his insurer, Aviva, for personal injuries arising out of the accident.

Dismissing the action brought by the two Corcorans, the president of the Circuit Court, Judge Raymond Groarke, held in July 2015 the incident was fraudulently staged by the brothers.

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Personal injury claims

He also remarked that a Romanian group was linked to Travellers in Ireland in the scam in order to mount personal injury claims.

The Corcorans lodged an appeal, but Aviva applied to have them first put up a sum of money to cover legal costs should they also lose the appeal. Costs had been awarded against them in the Circuit Court.

Aviva argued the Corcorans reside outside the jurisdiction and may be able to evade any order for costs made against them. The brothers opposed Aviva’s application.

In her judgment, Ms Justice Eileen Creedon in the High Court ruled the Corcorans were not required to provide security for costs.

She said part of the test for making security for costs orders was that the claimant must live outside the jurisdiction but, because Irish court orders can be readily enforced within EU states, the Aviva application for security fell at the first hurdle.

‘Hypothetical scenarios’

She also rejected arguments the security for costs issue should be adjourned in light of the uncertainty surrounding the UK’s position in the EU. The court must evaluate matters before it on the law as it stands and not “with an eye to hypothetical scenarios”.

She refused to grant a security-for-costs order and awarded the costs of the security application to the Corcorans.

After counsel for Aviva asked for a stay on her costs order, the judge adjourned the matter to next week to allow the court be provided with information concerning whether there was a stay on the costs order in the Circuit Court, pending appeal.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times