Desmond Murtagh Construction Ltd (In Receivership) & others v Hannaan & others [2014] IESC 52_1 (31 July 2014)

Desmond Murtagh Construction Ltd (In Receivership) & others v Hannaan & others [2014] IESC 52_1 (31 July 2014)

Special condition 10 of the contracts was clear and binding, requiring the purchasers to accept an engineer's certificate of compliance as conclusive evidence of compliance with planning and building regulations. The purchasers were not required to assume facts known to be untrue, and the principles allowing disregard of misleading conditions did not apply. The appeal was dismissed as the purchasers were contractually bound to complete upon production of the agreed certificate.

Citation
[2014] IESC 52_1
Parties
Plaintiffs/respondents: Desmond Murtagh Construction Limited (in Receivership) and Patrick Murtagh, Susan Watters together with the personal representatives of Desmond Murtagh (deceased); Defendants/appellants: Brendan Hannan, Oliver Malone, Sean McGuigan and John Olwell
Jurisdiction
Ireland
Judgment Date
31 July 2014
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Interpretation of Contracts, Planning Permission Compliance, Enforcement of Property Contracts, Special Conditions in Conveyancing, Rescission of Contract
Contract Law Property Law Planning Law Interpretation of Contracts Planning Permission Compliance Enforcement of Property Contracts Special Conditions in Conveyancing Rescission of Contract

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Parties

Desmond Murtagh Construction Limited (in Receivership) and Patrick Murtagh, Susan Watters together with the personal representatives of Desmond Murtagh (deceased)

Plaintiffs/respondents

Brendan Hannan, Oliver Malone, Sean McGuigan and John Olwell

Defendants/appellants

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal

Legal Issues

  1. 1 Whether the purchasers are bound to complete property contracts despite alleged non-compliance with planning conditions
  2. 2 Proper interpretation of special condition 10 and related contractual provisions
  3. 3 Applicability of principles allowing disregard of misleading contractual conditions

Ratio Decidendi

Special condition 10 of the contracts was clear and binding, requiring the purchasers to accept an engineer's certificate of compliance as conclusive evidence of compliance with planning and building regulations. The purchasers were not required to assume facts known to be untrue, and the principles allowing disregard of misleading conditions did not apply. The appeal was dismissed as the purchasers were contractually bound to complete upon production of the agreed certificate.

Court Disposition

Appeal dismissed

Orders

  • Purchasers are bound to complete the contracts upon production of the agreed certificate of compliance.
  • No entitlement to rescission of the contracts on planning grounds.