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ARTICLE · 16 MARCH 2016

Solicitors' Professional Indemnity Insurance Regulations Do Not Create Third-Party Rights

Matheson
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A number of recent High Court decisions have confirmed that third-party rights against insurers in Ireland are restricted.

IrelandLitigation, Mediation & Arbitration
April McClements
April McClements
Sharon Daly
Sharon Daly
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A number of recent High Court decisions have confirmed that third-party rights against insurers in Ireland are restricted. In this regard, the decision in Kennedy v Casey ([2015] IEHC 690) provides further comfort for insurers in the context of solicitors' professional indemnity insurance.

Background

The plaintiffs instructed a firm of solicitors to pursue a claim against the Irish government. The defendants to the state proceedings (which have been set down for hearing but not determined) pleaded the statute of limitations by way of defence, together with laches and delay. Consequently, the plaintiffs brought proceedings against their former solicitors claiming that they were negligent in failing to institute the state proceedings in a timely manner.

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