Allied Dunbar Assurance Plc v Ireland

In a fraud case, summary judgment requires a clear and plain case, especially where the person accused has categorically denied the fraud on affidavit. It is insufficient that the allegation might ultimately be proved at trial. Where the evidence contains material gaps and loose ends, or lacks sufficiently detailed evidence on a central issue, the court cannot safely determine liability summarily. The proper course is to set aside the summary judgment and direct a trial.

The claimant brought proceedings alleging fraud against the defendant. His Honour Judge Weeks QC, sitting in the High Court of Justice, Queen’s Bench Division, Bristol Mercantile Court, granted summary judgment. The defendant appealed. The central issue was whether the evidence established a sufficiently clear and plain case of fraud for summary determination, despite the defendant’s categorical denial.

1. Appeal allowed. The summary judgment was set aside.
2. Lord Justice Henry, delivering the judgment of the court, stated that an allegation of fraud must be proved to a high standard. Summary judgment requires a clear and plain case, particularly where the person accused has filed an affidavit categorically denying the fraud.
3. The court accepted that the case might ultimately prove clear and plain at trial. However, it was not satisfied on the material then before it. The evidence contained too many loose ends and gaps, and there was no sufficiently detailed evidence showing when the next day’s price was obtainable or obtained by the defendant. Those deficiencies made summary determination inappropriate.
4. The case was ordered to proceed to trial before a judge other than His Honour Judge Weeks QC. The appellant was awarded the costs of the appeal, while the costs of the Part 24 application were reserved to the trial judge.
5. The freezing order was continued until the end of the appeal. The police were directed to preserve the appellant’s computer and software, the respondent’s fax machines and the Saladin equipment for joint access by the parties, with liberty to apply to the court on seven days’ notice.

• Court of Appeal (Civil Division): allowed the appeal against the summary judgment and set aside the judgment.
• High Court of Justice, Queen’s Bench Division, Bristol Mercantile Court: His Honour Judge Weeks QC had granted summary judgment for the claimant.