GRAHAM P. KENNY

Principal Kenny Solicitors

ACTIVITY In 2019, I sat in the High Court representing parties in the case of Quinn v IBRC. Due to the voluminous paperwork associated with the case, it was agreed that no physical documents would be produced in court, so all documents were uploaded to a central system so that they could be viewed remotely. This partially remote trial was extremely novel at the time, and little did we suspect that within two years of that experiment the Commercial Court would move entirely online.

Section 11(2) of the Civil Law and Criminal Law Act 2020 directs that proceedings may now be held by way of remote hearing. However, the Courts Service has been desperately under-funded, and the absence of technical infrastructure together with practitioners’ inexperience has meant that the conversion to online trials has progressed with infuriating sluggishness.

While judges normally sit in court at these new remote hearings, the participating lawyers very often work from home. A system

‘Conversion to online trials has progressed with infuriating sluggishness’

has developed whereby lawyers log on to a central online courts system, and in the normal course sit with their camera turned off and their sound on mute until their case is called. This has led to some wonderful moments of mirth, where unsuspecting lawyers’ cameras have turned on as they work away, oblivious to the fact that 50 people online are watching them.

For the most part, everyone has now adapted to commercial proceedings online and the court lists are starting to move along. Any trial that does not involve live witness testimony will proceed with all participates arguing their points remotely.

OUTLOOK Many companies are presently limping along on government supports and desperately clinging to solvency through creditor forbearance. These zombie companies are already dead, and will either liquidate or restructure within the coming year. Unfortunately, insolvency will become a burgeoning area.

We have been consulted by many directors enquiring as to what the restructuring process entails for them and whether their company is a suitable candidate. Recurring queries relate to how secured bank debt is treated, how personal guarantees are affected, whether leases may be terminated or renegotiated and how unsecured creditors may be impaired. Regrettably, there is still a lot of misinformation circulating, so it is imperative that directors should seek experienced professional advice at the earliest opportunity.