Millar & anor -v- Financial Services Ombudsman & anor [2015] IECA 126 (24 June 2015)

Millar & anor -v- Financial Services Ombudsman & anor [2015] IECA 126 (24 June 2015)

The High Court erred in examining afresh the contractual construction of clause 3 and in requiring the Ombudsman to consider fairness and reasonableness beyond the complaint. The Ombudsman’s interpretation that the Bank could increase rates in response to market conditions, including funding costs, was not vitiated by a serious error. The Millars failed to establish that the Ombudsman’s decision was in error.

Citation
[2015] IECA 126
Parties
Appellants/respondents: Kenneth Millar and Donna Millar; Respondent/appellant: Financial Services Ombudsman; Notice Party/appellant: Danske Bank (formerly National Irish Bank)
Jurisdiction
Ireland
Judgment Date
24 June 2015
Procedural Posture
Statutory Appeal / Court of Appeal Judgment
Outcome
Appeals allowed; High Court order vacated; Millars’ appeal dismissed
Legal Topics
Interpretation of Loan Agreements, Scope of Ombudsman Review, Standard of Judicial Review, Variable Interest Rates
Banking Law Contract Law Administrative Law Interpretation of Loan Agreements Scope of Ombudsman Review Standard of Judicial Review Variable Interest Rates

Case Brief

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Parties

Kenneth Millar and Donna Millar

Appellants/respondents

Financial Services Ombudsman

Respondent/appellant

Danske Bank (formerly National Irish Bank)

Notice Party/appellant

Procedural Posture

Statutory Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the Ombudsman erred in contractual construction of clause 3 of the loan agreements
  2. 2 Whether the High Court should defer to the Ombudsman on pure questions of contract law
  3. 3 Whether the Ombudsman was obliged to consider fairness and reasonableness under s. 57BK(4) and s. 57CI(2)

Ratio Decidendi

The High Court erred in examining afresh the contractual construction of clause 3 and in requiring the Ombudsman to consider fairness and reasonableness beyond the complaint. The Ombudsman’s interpretation that the Bank could increase rates in response to market conditions, including funding costs, was not vitiated by a serious error. The Millars failed to establish that the Ombudsman’s decision was in error.

Court Disposition

Appeals allowed; High Court order vacated; Millars’ appeal dismissed

Orders

  • Order vacating High Court’s remittal to Ombudsman
  • Order dismissing Millars’ appeal against Ombudsman’s finding