Courtney -v- McCarthy [2007] IESC 58 (04 December 2007)

Courtney -v- McCarthy [2007] IESC 58 (04 December 2007)

The vendor, having promised to permit completion of the original contract on a specified date and the purchaser having acted to her detriment in reliance on that promise, is estopped from asserting the prior rescission as a defence to the purchaser's counterclaim for specific performance. The purchaser was ready and willing to complete on the agreed terms, and the vendor's repudiation of the promise was unjustified. Specific performance is granted.

Citation
[2007] IESC 58
Parties
Plaintiff/respondent (vendor): Anne B. Courtney; Defendant/appellant (purchaser): Therese McCarthy
Jurisdiction
Ireland
Judgment Date
04 December 2007
Procedural Posture
Civil Appeal (contract/specific Performance) / Supreme Court Appeal From High Court
Outcome
Appeal allowed; High Court order set aside; specific performance granted to purchaser; vendor's action dismissed.
Legal Topics
Specific Performance, Equitable Estoppel, Contract Rescission, Sale of Land
Contract Law Equity Specific Performance Equitable Estoppel Contract Rescission Sale of Land

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Parties

Anne B. Courtney

Plaintiff/respondent (vendor)

Therese McCarthy

Defendant/appellant (purchaser)

Procedural Posture

Civil Appeal (contract/specific Performance) / Supreme Court Appeal From High Court

Legal Issues

  1. 1 Whether the vendor is estopped from relying on a prior rescission to defeat the purchaser's claim for specific performance
  2. 2 Whether a promise to complete a rescinded contract, acted upon to the purchaser's detriment, gives rise to an enforceable estoppel

Ratio Decidendi

The vendor, having promised to permit completion of the original contract on a specified date and the purchaser having acted to her detriment in reliance on that promise, is estopped from asserting the prior rescission as a defence to the purchaser's counterclaim for specific performance. The purchaser was ready and willing to complete on the agreed terms, and the vendor's repudiation of the promise was unjustified. Specific performance is granted.

Court Disposition

Appeal allowed; High Court order set aside; specific performance granted to purchaser; vendor's action dismissed.

Orders

  • Specific performance of the contract granted in favour of the purchaser (Therese McCarthy).
  • Vendor's (Anne B. Courtney) claim dismissed.