The Motor Insurers Bureau of Ireland has won a landmark legal decision against uninsured drivers who refuse to co-operate with it in dealing with personal injuries claims.
Stephen Galvin, Old Court Road, Tallaght, Dublin, an uninsured motorist, decided he would "take a back seat" when an injured man sued him and the bureau for damages.
Judge Alison Lindsay granted the MIBI summary judgment against Galvin for €28,303 which the bureau had paid out in damages and legal costs to Kieran Fox, the injured party, in settlement of his High Court personal injuries claim against Galvin and the bureau.
The Circuit Civil Court had heard that Galvin's uninsured car had been involved in a crash in which Mr Fox, Grange Road, Rathfarnham, Dublin, had sustained personal injuries on June 26th, 2000. Mr Fox, a pedestrian, had sued Galvin and the MIBI, which is obliged to indemnify uninsured drivers.
Brian O'Moore SC, who appeared with Robert Beatty, for the MIBI, told the court that Mr Fox's proceedings had been served on the bureau and Galvin, and the MIBI was seeking to recoup the settlement it had paid out on Galvin's behalf.
He said Galvin had notice of the proceedings having been taken against him but had chosen not to do anything. Galvin was not entitled to reopen the High Court case brought by Mr Fox when he had chosen not to defend the claim in the first place.
Sarah Berkeley, counsel for Galvin, said the €28,000 plus settlement had been paid out by the MIBI without her client's authorisation. Galvin was denying liability for the accident. She submitted the case should go to a full hearing as issues of liability needed to be tried by a judge hearing oral evidence.
High Court proceedings had not gone to a full hearing as the MIBI had settled litigation.
Galvin had no input into the settlement and had not authorised MIBI to settle the claim on his behalf and therefore did not have a liability to the MIBI.
Judge Lindsay, in a reserved judgment, said Galvin had received correspondence from a loss adjuster and solicitors and had taken legal advice on the collision. He had chosen not to defend the High Court proceedings and she accepted that the manner in which the MIBI had handled the case was fair and reasonable.
She said Galvin had the option of entering the legal process but had chosen not to do so and was now seeking a "second bite" to defend the action which he was not now entitled to do.