Shirley & ors v A. O'Gorman & Co. Ltd & ors [2012] IESC 5 (02 February 2012)

Shirley & ors v A. O'Gorman & Co. Ltd & ors [2012] IESC 5 (02 February 2012)

The Supreme Court held that the relevant statutory provisions, when interpreted in accordance with the Constitution, require that the right to acquire the fee simple under section 10(2) of the 1978 Act only arises where none of the permanent buildings were erected by the lessor or their predecessors in title. The presumption in favour of the lessee is not arbitrary, as it is rebuttable and justified by evidential difficulties. The valuation mechanism, though resulting in a low purchase price, is not unconstitutional as it is rationally connected to the legislative scheme and does not amount to an unjust attack on property rights. The appeal was dismissed and the High Court order affirmed.

Citation
[2012] IESC 5
Parties
Plaintiff/appellant: John E Shirley; Plaintiff/appellant: JES Holdings Limited; Plaintiff/appellant: Lucy Shirley; Defendant/respondent: A. O’Gorman & Company Limited; Defendant/respondent: Ireland; Defendant/respondent: The Attorney General
Jurisdiction
Ireland
Judgment Date
02 February 2012
Procedural Posture
Appeal (supreme Court of Ireland) / Judgment on Appeal From High Court, Constitutional Challenge to Legislation
Outcome
Appeal dismissed; High Court order affirmed
Legal Topics
Compulsory Acquisition of Fee Simple, Ground Rents, Presumption of Constitutionality, Interpretation of Statutes, Protection of Property Rights, Valuation of Property Interests
Constitutional Law Property Law Landlord and Tenant Law Compulsory Acquisition of Fee Simple Ground Rents Presumption of Constitutionality Interpretation of Statutes Protection of Property Rights +1 more

Case Brief

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Parties

John E Shirley

Plaintiff/appellant

JES Holdings Limited

Plaintiff/appellant

Lucy Shirley

Plaintiff/appellant

A. O’Gorman & Company Limited

Defendant/respondent

Ireland

Defendant/respondent

The Attorney General

Defendant/respondent

Procedural Posture

Appeal (supreme Court of Ireland) / Judgment on Appeal From High Court, Constitutional Challenge to Legislation

Legal Issues

  1. 1 Whether the Landlord and Tenant (Ground Rents) (No. 2) Act, 1978, in permitting compulsory acquisition of the fee simple by lessees, is unconstitutional as applied to the facts
  2. 2 Whether the statutory presumption regarding erection of permanent buildings is arbitrary or unjust
  3. 3 Whether the valuation mechanism for fixing the purchase price is constitutionally valid

Ratio Decidendi

The Supreme Court held that the relevant statutory provisions, when interpreted in accordance with the Constitution, require that the right to acquire the fee simple under section 10(2) of the 1978 Act only arises where none of the permanent buildings were erected by the lessor or their predecessors in title. The presumption in favour of the lessee is not arbitrary, as it is rebuttable and justified by evidential difficulties. The valuation mechanism, though resulting in a low purchase price, is not unconstitutional as it is rationally connected to the legislative scheme and does not amount to an unjust attack on property rights. The appeal was dismissed and the High Court order affirmed.

Court Disposition

Appeal dismissed; High Court order affirmed

Orders

  • The appeal is dismissed.
  • The High Court order is affirmed.