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Third party action against Central Bank of Ireland could proceed
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High Court dismisses an application by the Central Bank of Ireland (CBI) to strike out a third party statement of claim in an action brought by a bank in special liquidation against former directors of a building society whose assets had been transferred to the plaintiff bank, on grounds that the CBI had a duty of care to the defendants, and that a statutory immunity from damages did not render the CBI immune from suit.
Application to dismiss third party proceedings - Order 19 rule 27 and/or rule 28 - whether reasonable cause of action - whether frivolous or vexatious - plaintiff bank in special liquidation - claim against directors of building society (Irish Nationwide Building Society - INBS) whose assets had been transferred to plaintiff - allegations that directors had unlawfully, excessively or improperly delegated powers to the Chief Executive Officer - breaches of duties as directors - plea in defence that any delegation was done with the full knowledge and express consent of the Central Bank of Ireland (CBI) - joinder of CBI as third party - whether affidavit grounding joinder was accurate and comprehensive - principles grounding an application to strike out proceedings - whether action in damages lay for breach of statutory duty where duty being exercised in the public good - whether CBI owed a statutory duty to bank or building society - Building Societies Act 1989 - whether INBS had stateable cause of action against CBI for negligent breach of statutory duty - whether CBI owed common law duty of care to INBS - whether CBI had duty of care to individual directors - whether claim for misfeasance in public office should be struck out - whether CBI had immunity from damages - Central Bank Act 1942 - Central Bank and Financial Services Authority of Ireland Act 2003 - s.33 AJ, 1942 Act, as inserted.
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