The MIBI Appeal 

The legal arguments commenced before President Ryan, Ms Justice Finlay Geoghegan and Mr Justice Hogan on Tuesday 12 January 2016, and concluded on Thursday 15 January 2016. The judgment of the Court of Appeal is now awaited.

The initial High Court case

The High Court case, which was heard by Mr Justice Hedigan, was initiated by the Accountant of the Courts of Justice in order to seek the Court’s determination on specific legal issues. The Law Society acted as legitimus contradictor and presented the legal argument against MIBI. The proceedings posed the following questions for the Court’s determination:

1. Whether the MIBI has a liability or potential liability to pay out in respect of claims against persons who were insured with Setanta, a Maltese registered insurance company, at the time of its entering into liquidation in April 2014.
2. If so, how any such liability or potential liability on the part the MIBI impacts upon the power of the High Court to approve payments under section 3 of the Insurance Act 1964 (as inserted by section 4 of the Insurance (Amendment) Act 2011) authorising payment out of the Fund "only if it appears to the High Court that it is unlikely that the claim can be met otherwise than from the Fund.”

Mr Justice Hedigan’s judgment confirmed that the Motor Insurers Bureau of Ireland has a liability in respect of claims against the policyholders of the insolvent insurance company, Setanta.  MIBI has appealed this judgment.  Mr Justice Hedigan granted the MIBI a temporary stay of 7 days on his order.  However, a further stay was refused by the Court of Appeal at the initial Directions Hearing in November 2015.

President Ryan said that the Court of Appeal appreciates the urgency of this matter and that its judgment would be delivered as soon as possible.