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Goldstein Property ICAV v RELM Loan Opportunities 2 Designated Activity Company and Ors (Approved)

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Factual and Procedural Background

The dispute arose in Commercial Court proceedings in which the Plaintiff says the Defendant Companies are estopped from enforcing loans and appointing receivers over 47 commercial properties in Ireland. The Defendant Companies sought to restrain the Plaintiff from pursuing U.S. discovery proceedings against Company A under 28 U.S.C. §1782, alleging that the proceedings were being used as lawfare to increase irrecoverable costs and pressure settlement in the Irish case. The Plaintiff opposed that view and said it was entitled to seek third-party discovery abroad. [Para 17][Para 18][Para 19][Para 20][Para 21][Para 26][Para 29][Para 30]

The court also referred to earlier related judgments in which it removed a lis pendens over the properties, described the underlying estoppel case as very weak, refused an interlocutory injunction in related proceedings, and criticised the Plaintiff’s litigation conduct and use of legal costs against third parties. [Para 34][Para 35][Para 36][Para 37][Para 38][Para 39][Para 40]

The Defendant Companies also sought security for costs, and the application was heard after prior hearings and a correcting affidavit on funding. [Para 44][Para 45][Para 46][Para 50]

Legal Issues Presented

  1. Whether the Plaintiff could pursue foreign §1782 discovery proceedings against Company A without the Commercial Court’s consent or notification, consistently with the Commercial Court’s case-management regime and cost-minimisation objective. [Para 28][Para 32][Para 78][Para 79][Para 152][Para 155][Para 165]
  2. Whether the court should grant an anti-suit injunction to restrain the Plaintiff from continuing those foreign proceedings. [Para 44][Para 45][Para 49][Para 315][Para 316]
  3. Whether the Defendant Companies were entitled to security for costs in the estoppel proceedings. [Para 49][Para 346][Para 350]
  4. Whether any evidence obtained through the foreign proceedings should be treated as inadmissible or irrelevant. [Para 49][Para 343]

Arguments of the Parties

Defendant Companies' Arguments

Plaintiff's Arguments

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
South Carolina Insurance Co v Assurantie Maatschappij 'De Zeven Provincien' NV [1987] AC 24 Anti-suit relief is generally confined to invasion of a legal or equitable right, or unconscionable conduct. The court considered but declined to follow this authority, preferring a modern case-management approach and later Canadian and Australian decisions. [Para 32][Para 236][Para 237][Para 240][Para 241]
Re GTLK Europe DAC (in Liquidation) [2025] IEHC 524 An Irish court may protect the integrity of its own processes and restrain foreign proceedings that undermine them. The court accepted that principle, but said the present dispute concerned procedural case management rather than substantive liquidation rights. [Para 218][Para 219][Para 220][Para 223][Para 224][Para 226][Para 227]
Fusco v O'Dea [1984] 2 I.R. 93 An Irish court cannot order discovery against a non-domiciled third party in Ireland. The court used this to explain why Company A could not simply be compelled in Ireland, but held that this did not justify bypassing the Commercial Court entirely. [Para 125][Para 127]
Chambers v Times Newspapers Ltd [1999] 2 I.R. 424 Third-party discovery should be ordered only where no realistic alternative exists and the documents are not otherwise readily obtainable. The court relied on this principle to say the Plaintiff should have tried alternative, less intrusive routes before launching foreign proceedings. [Para 128][Para 129][Para 131][Para 132][Para 136][Para 137][Para 143][Para 144][Para 150]
Kalix Fund Ltd v HSBC Institutional Trust Services (Ire) Ltd [2010] 2 I.R. 581; [2009] IEHC 457 Courts should avoid wasting scarce court and party resources. The court used this to support the view that unnecessary foreign procedural steps, especially costly ones, can be inconsistent with proper case management. [Para 201][Para 202][Para 203][Para 204][Para 205][Para 206][Para 207]
Tracey v Burton [2016] IESC 16 There is a strong public interest in effective case management, fair procedures, and avoiding unnecessary costs. The court treated this as modern support for a court-controlled litigation model rather than party-driven procedural freedom. [Para 232][Para 233][Para 234][Para 235][Para 236]
O'Reilly McCabe v Minister for Justice & Patrick Cusack Smith & Co (Agents of Thomas McCabe, Ward of Court & Minor) [2009] IESC 52 The court should protect opposing parties, finality, court resources, and fair procedures. The court cited this as part of the public-interest foundation for case management and cost control. [Para 233][Para 234][Para 235]
Mancinelli v Royal Bank of Canada [2017] ONSC 87 A foreign discovery application should not be used to bypass a domestic case-management regime. The court preferred this reasoning and treated it as closely analogous to the present Commercial Court context. [Para 244][Para 246][Para 247][Para 248][Para 249][Para 250][Para 251][Para 254][Para 255][Para 256][Para 257][Para 258][Para 260]
Jones v Treasury Wine Estates Ltd [2016] FCAFC 59 Invoking foreign discovery without the supervising court’s knowledge can undermine that court’s control of the proceedings. The court relied on this to say that the Plaintiff’s ex parte foreign step undermined the Commercial Court’s supervision and cost-minimisation goals. [Para 262][Para 263][Para 264][Para 267][Para 268][Para 269][Para 272][Para 273]
Lavecky v Visa Inc [2017] FCA 454 Relevant factors include importance of the material, alternatives, proportionality, cost, and whether the foreign step is truly necessary. The court used these factors to conclude the Plaintiff should not have made the foreign application as its first step. [Para 284][Para 285][Para 287][Para 288][Para 289][Para 291][Para 292][Para 293][Para 294][Para 295][Para 296][Para 297][Para 300]
National Mutual Holdings Pty Ltd v The Sentry Corporation (1989) 22 FCR 209 A court has exclusive control over proceedings before it. The court cited this in support of the proposition that modern case management gives the supervising court real control over litigation steps. [Para 264]
Usk District Residents Association Limited v Environmental Protection Agency [2006] ILRM 363 The moving party for security for costs must show a prima facie defence and inability of the plaintiff to pay costs. The court applied this established test and found those requirements satisfied. [Para 350][Para 351][Para 352][Para 353]
Interfinance Group Ltd v KPMG [unreported, High Court, 29 June 1998] Part of the established Irish security for costs framework. The court treated it as part of the authority underpinning the standard security-for-costs test. [Para 350]
Quinn Insurance Limited v PricewaterhouseCoopers [2021] 2 I.R. 70; [2021] IESC 15 The court should consider possible stifling and generally err on the side of greater inquiry. The court used this to reject the claim that security would stifle the proceedings and to assess the least risk of injustice. [Para 371][Para 372][Para 373][Para 374][Para 375][Para 376]
Connaughton Road Construction Limited v. Laing O'Rourke Ireland Limited [2009] IEHC 7 A plaintiff may rely on special circumstances if its impecuniosity flows from the defendant’s wrongdoing. The court acknowledged the principle but held that the Plaintiff had not shown its inability to pay flowed from the receivership. [Para 351][Para 352][Para 370][Para 372]
Hedgecroft Limited v Htremfta Ltd [2018] IECA 364 Security can be ordered where there is no evidence the order will stifle the claim and investors can provide funding. The court relied on this to say an order for security would not stifle the case and that the Plaintiff’s owner or investors could fund it. [Para 377][Para 378][Para 379][Para 380][Para 381]
Farrell v Bank of Ireland [2012] IESC 42 Costs can operate as “blackmail,” and security for costs helps prevent a free ride for impecunious litigants or their backers. The court used this language to support the public-interest justification for ordering security and to explain why a wealthy backer should bear risk. [Para 370][Para 371][Para 395][Para 396][Para 30]
Beakonford Limited v Stokes [2025] IEHC 22 Judges have long called for reduced litigation costs. The court cited it to underscore the longstanding concern that litigation costs remain excessive. [Para 241][Para 24]
Bourbon v Ward [2012] IEHC 30 Litigation costs are described as prohibitive. The court referred to this in reinforcing its view that unnecessary cost escalation is contrary to justice and case management. [Para 25][Para 28]
Goldstein v RELM [2026] IEHC 299 The court had previously removed a lis pendens, described the estoppel case as very weak, and criticised the Plaintiff’s litigation conduct. The court relied on those earlier findings to explain the background, the credibility concerns, and the present concern about cost weaponisation. [Para 35][Para 37][Para 38][Para 39][Para 40][Para 16][Para 111]

Court's Reasoning and Analysis

The court first accepted that Company A was a third party, but noted that it was closely connected to the dispute because it was financially linked to the Defendant Companies and may hold documents about the lending relationship, alleged representations, and the factual matrix of those representations. The court therefore accepted that relevant documents might exist outside Ireland, but said that this did not answer the separate question of whether the Plaintiff should have gone first to a U.S. court in the manner it did. [Para 52][Para 54][Para 56][Para 58][Para 60][Para 62][Para 63][Para 64][Para 65][Para 67][Para 68][Para 70][Para 75][Para 76]

The court then focused on case management. It held that the Commercial Court rules and practice direction require all steps in Commercial Court proceedings to be subject to the court’s directions and to be taken in a way likely to minimise costs. On that basis, the court reasoned that an ex parte foreign discovery application in aid of the Irish case should have been brought to the Commercial Court’s attention in advance. [Para 151][Para 152][Para 153][Para 154][Para 155][Para 163][Para 164][Para 165][Para 167][Para 168][Para 169][Para 170][Para 171][Para 172][Para 173][Para 174][Para 177][Para 20]

The court also found that the Plaintiff’s stated urgency was weakened by its failure to seek an adjournment of the strike-out motion and by its failure to tell the Commercial Court what it was doing. That omission undermined the credibility of the asserted need for “crucial” documents and supported the inference that the foreign proceedings were used as leverage rather than as a genuine first resort for evidence. [Para 176][Para 177][Para 182][Para 183][Para 184][Para 23][Para 185][Para 186][Para 187][Para 188][Para 189][Para 190][Para 191][Para 192][Para 193][Para 194]

The court treated the Plaintiff’s conduct as a continuation of earlier cost-weaponisation against third parties. It considered the service of the foreign pleadings on sales agents and prospective purchasers to be unexplained and consistent with an attempt to intimidate outsiders and thwart sale of the properties. [Para 113][Para 115][Para 116][Para 117][Para 118][Para 119][Para 121][Para 133][Para 134][Para 135][Para 136][Para 137][Para 138][Para 139][Para 140][Para 19][Para 141][Para 142][Para 143][Para 144][Para 145][Para 146][Para 147][Para 148][Para 149][Para 150][Para 302][Para 303][Para 304][Para 305][Para 306][Para 307][Para 308][Para 309][Para 310][Para 311][Para 312]

On the anti-suit question, the court preferred the Canadian and Australian authorities over South Carolina and concluded that an anti-suit injunction can, in principle, be granted to protect the integrity of a domestic case-management regime even where no legal or equitable right is directly invaded. However, because the U.S. proceedings were effectively at the point of judgment, the court said there was little practical gain in making the order immediately and indicated it would hear further submissions before final orders. [Para 218][Para 219][Para 220][Para 223][Para 224][Para 226][Para 227][Para 228][Para 230][Para 231][Para 232][Para 236][Para 237][Para 238][Para 240][Para 241][Para 242][Para 255][Para 256][Para 260][Para 263][Para 268][Para 269][Para 271][Para 272][Para 273][Para 274][Para 275][Para 277][Para 278][Para 279][Para 280][Para 281][Para 282][Para 297][Para 298][Para 299][Para 300][Para 315][Para 316][Para 317][Para 318][Para 319][Para 320][Para 324][Para 325][Para 326][Para 327][Para 328][Para 329][Para 330][Para 331][Para 332][Para 333]

On security for costs, the court accepted that the Defendant Companies had shown a prima facie defence and that the Plaintiff could not pay the Defendant Companies’ costs if they succeeded. It rejected the Plaintiff’s argument that its impecuniosity was caused by the receivership, finding instead that the shortfall and cash-flow problems pre-dated that event. The court also found no evidence that an order would stifle the claim, and treated the presence of an investor behind the Plaintiff as relevant to the fairness of requiring security. [Para 346][Para 347][Para 348][Para 349][Para 350][Para 351][Para 352][Para 353][Para 354][Para 355][Para 356][Para 357][Para 358][Para 359][Para 360][Para 361][Para 362][Para 363][Para 364][Para 365][Para 366][Para 367][Para 368][Para 369][Para 370][Para 371][Para 372][Para 373][Para 374][Para 375][Para 376][Para 377][Para 378][Para 379][Para 380][Para 381][Para 382][Para 383][Para 384][Para 385][Para 386][Para 388][Para 389][Para 390][Para 391][Para 392][Para 396][Para 399][Para 400]

Holding and Implications

PRELIMINARY DISPOSITION: the court held that the Plaintiff should not have issued the U.S. proceedings without the Commercial Court’s consent, and said it would have granted an anti-suit injunction if the foreign proceedings were not already practically finished. It will hear submissions before making final orders, including any steps needed after the U.S. court’s judgment. The court also held that security for costs should be ordered in the amount of €944,460, exclusive of VAT. [Para 404][Para 405][Para 406][Para 407]

The immediate practical effect is that the parties must return for further directions, and the Plaintiff must provide security for costs; the court did not finally determine the anti-suit request at that stage because of the procedural posture of the foreign proceedings. [Para 324][Para 325][Para 328][Para 329][Para 330][Para 331][Para 332][Para 333][Para 336][Para 337][Para 338][Para 339][Para 340][Para 341][Para 342][Para 343][Para 401][Para 405][Para 407]

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Goldstein Property ICAV v RELM Loan Opportunities 2 Designated Activity Company and Ors (Approved)

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Goldstein Property ICAV v RELM Loan Opportunities 2 Designated Activity Company and Ors (Approved)
(Jul 24, 2026)