Palaceanne Management Ltd -v- Allied Irish Bank plc [2017] IECA 141 (10 May 2017)

Palaceanne Management Ltd -v- Allied Irish Bank plc [2017] IECA 141 (10 May 2017)

The 2009 conveyance expressly excluded the two mortgaged apartments from the transfer to the management company and reserved easements, including rights of way, for their benefit. The bank's rights under the mortgage were not extinguished by the 2009 deed. Even if not for the express reservation, a right of way of necessity or by implication of law would arise to prevent the apartments from being landlocked. The estate scheme and prior agreements did not preclude the existence of such rights. The High Court erred in overlooking the express terms of the 2009 conveyance and in finding that AIB had no entitlement to easements over the common areas for the two apartments.

Citation
[2017] IECA 141
Parties
Plaintiff/respondent: Palaceanne Management Limited; Defendant/appellant: Allied Irish Bank PLC
Jurisdiction
Ireland
Judgment Date
10 May 2017
Procedural Posture
Civil Appeal / Appeal From High Court to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Easements, Mortgages, Multi Unit Developments, Implied Rights of Way, Estate Schemes
Property Law Land Law Easements Mortgages Multi Unit Developments Implied Rights of Way Estate Schemes

Case Brief

Summary, issues, holding and outcome

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Parties

Palaceanne Management Limited

Plaintiff/respondent

Allied Irish Bank PLC

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Whether the mortgagee (AIB) is entitled to easements, including rights of way, over the common areas of a multi-unit development for two mortgaged apartments.
  2. 2 Whether the 2009 conveyance extinguished or preserved such rights.
  3. 3 Whether a right of way of necessity or by implication arises in the circumstances.

Ratio Decidendi

The 2009 conveyance expressly excluded the two mortgaged apartments from the transfer to the management company and reserved easements, including rights of way, for their benefit. The bank's rights under the mortgage were not extinguished by the 2009 deed. Even if not for the express reservation, a right of way of necessity or by implication of law would arise to prevent the apartments from being landlocked. The estate scheme and prior agreements did not preclude the existence of such rights. The High Court erred in overlooking the express terms of the 2009 conveyance and in finding that AIB had no entitlement to easements over the common areas for the two apartments.

Court Disposition

Appeal allowed

Orders

  • Bank's entitlement to easements, including rights of way, over the common areas for the two mortgaged apartments is affirmed.
  • Issues as to costs to be considered later.