Mary and Joseph O' Brien Developments Ltd (In Liquidation) -v- Sobol & ors [2016] IECA 133 (09 May 2016)

Mary and Joseph O' Brien Developments Ltd (In Liquidation) -v- Sobol & ors [2016] IECA 133 (09 May 2016)

Mr. Allen failed to discharge the burden of advancing evidence to demonstrate a prima facie defence to the company’s claim; the company’s unregistered burden, supported by unrefuted evidence, has priority over Mr. Allen’s judgment mortgage as a matter of law.

Citation
[2016] IECA 133
Parties
Plaintiff/appellant: Mary and Joseph O’Brien Developments Limited (In Liquidation); 1st Defendant/respondent: Robert Sobol; 2nd Defendant/respondent: Mary O’Brien Sobol; 3rd Defendant/respondent: Anthony Allen
Jurisdiction
Ireland
Judgment Date
09 May 2016
Procedural Posture
Appeal / Judgment on Appeal Against High Court Order for Security for Costs
Outcome
Appeal allowed; High Court order for security for costs set aside.
Legal Topics
Security for Costs, Priority of Charges, Liquidation, Judgment Mortgage, Unregistered Burdens
Company Law Civil Procedure Security for Costs Priority of Charges Liquidation Judgment Mortgage Unregistered Burdens

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Parties

Mary and Joseph O’Brien Developments Limited (In Liquidation)

Plaintiff/appellant

Robert Sobol

1st Defendant/respondent

Mary O’Brien Sobol

2nd Defendant/respondent

Anthony Allen

3rd Defendant/respondent

Procedural Posture

Appeal / Judgment on Appeal Against High Court Order for Security for Costs

Legal Issues

  1. 1 Whether the defendant established a prima facie defence to the company’s claim for purposes of s. 390 Companies Act 1963
  2. 2 Priority between judgment mortgage and unregistered company burden

Ratio Decidendi

Mr. Allen failed to discharge the burden of advancing evidence to demonstrate a prima facie defence to the company’s claim; the company’s unregistered burden, supported by unrefuted evidence, has priority over Mr. Allen’s judgment mortgage as a matter of law.

Court Disposition

Appeal allowed; High Court order for security for costs set aside.

Orders

  • High Court order requiring the company to provide security for costs to Mr. Allen is set aside.
  • No security for costs required from the company in respect of Mr. Allen’s defence.