Bula Ltd. v. Crowley [2003] IESC 10 (13 February 2003)

Bula Ltd. v. Crowley [2003] IESC 10 (13 February 2003)

The Supreme Court held that the appointment of a receiver under a mortgage or debenture creates a unique tripartite contractual relationship between mortgagor, receiver, and mortgagee. In such circumstances, adverse possession as required by section 18(1) of the Statute of Limitations does not arise, and the limitation period does not run against the Banks while the receiver is active. The plaintiffs failed to establish adverse possession or that the Banks' title or right to principal and interest was extinguished. The claims were dismissed.

Citation
[2003] IESC 10
Parties
Plaintiff/appellant: Bula Limited (In Receivership); Plaintiff/appellant: Bula Holdings; Plaintiff/appellant: Richard Wood; Plaintiff/appellant: Michael Wymes; Defendant/respondent: Laurence Crowley; Defendant/respondent: Northern Bank Finance Corporation Limited; Defendant/respondent: Ulster Investment Bank Limited; Defendant/respondent: Allied Irish Investment Bank Limited
Jurisdiction
Ireland
Judgment Date
13 February 2003
Procedural Posture
Civil Appeal / Supreme Court Judgment on Preliminary Issues
Outcome
Appeal dismissed
Legal Topics
Statute of Limitations, Receivership, Mortgages and Charges, Adverse Possession, Redemption Actions
Banking and Finance Law Property Law Insolvency Law Statute of Limitations Receivership Mortgages and Charges Adverse Possession Redemption Actions

Case Brief

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Parties

Bula Limited (In Receivership)

Plaintiff/appellant

Bula Holdings

Plaintiff/appellant

Richard Wood

Plaintiff/appellant

Michael Wymes

Plaintiff/appellant

Laurence Crowley

Defendant/respondent

Northern Bank Finance Corporation Limited

Defendant/respondent

Ulster Investment Bank Limited

Defendant/respondent

Allied Irish Investment Bank Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Supreme Court Judgment on Preliminary Issues

Legal Issues

  1. 1 Whether the Statute of Limitations extinguished the Banks' title to mortgaged property and their right to principal and interest
  2. 2 Whether adverse possession is required for limitation to run against a mortgagee in receivership
  3. 3 Whether the appointment of a receiver affects the running of time under the Statute of Limitations

Ratio Decidendi

The Supreme Court held that the appointment of a receiver under a mortgage or debenture creates a unique tripartite contractual relationship between mortgagor, receiver, and mortgagee. In such circumstances, adverse possession as required by section 18(1) of the Statute of Limitations does not arise, and the limitation period does not run against the Banks while the receiver is active. The plaintiffs failed to establish adverse possession or that the Banks' title or right to principal and interest was extinguished. The claims were dismissed.

Court Disposition

Appeal dismissed

Orders

  • Claims of the plaintiffs against the first to fourth named defendants dismissed effective from 15 January 1999
  • Plaintiffs to pay defendants' costs of the action and of Statute of Limitations issues