John E Shirley & Ors v A O Gorman & Ors [2006] IEHC 27 (31 January 2006)

John E Shirley & Ors v A O Gorman & Ors [2006] IEHC 27 (31 January 2006)

The statutory scheme for the compulsory acquisition of the fee simple by tenants under the Landlord and Tenant (Ground Rents) (No.2) Act, 1978 and the price-fixing mechanism under s.7 of the 1984 Act do not constitute an unconstitutional or unjust attack on the plaintiffs' property rights. The scheme pursues...

Source-derived case information.

Citation
[2006] IEHC 27
Parties
Plaintiff: John E. Shirley; Plaintiff: JES Holdings Limited; Plaintiff: Lucy Shirley; Defendant: A. O'Gorman & Company Limited; Defendant: Ireland; Defendant: The Attorney General
Jurisdiction
Ireland
Judgment Date
31 January 2006
Procedural Posture
Constitutional Challenge / Landlord and Tenant / High Court Judgment After Circuit Court Appeal and Remittal for Constitutional Determination
Outcome
Plaintiffs' constitutional challenge dismissed; statutory scheme upheld.
Legal Topics
Property Rights, Ground Rents, Acquisition of Fee Simple, Statutory Interpretation, Constitutionality of Legislation
Constitutional Law Land Law Landlord and Tenant Property Rights Ground Rents Acquisition of Fee Simple Statutory Interpretation Constitutionality of Legislation

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Parties

John E. Shirley

Plaintiff

JES Holdings Limited

Plaintiff

Lucy Shirley

Plaintiff

A. O'Gorman & Company Limited

Defendant

Ireland

Defendant

The Attorney General

Defendant

Procedural Posture

Constitutional Challenge / Landlord and Tenant / High Court Judgment After Circuit Court Appeal and Remittal for Constitutional Determination

Legal Issues

  1. 1 Whether the statutory scheme for compulsory acquisition of fee simple by tenants under the Landlord and Tenant (Ground Rents) (No.2) Act, 1978 and Landlord & Tenant (Amendment) Act, 1984 is unconstitutional as an unjust attack on property rights
  2. 2 Whether the price-fixing mechanism under s.7 of the 1984 Act is arbitrary, disproportionate, or otherwise unconstitutional
  3. 3 Whether the scheme pursues a legitimate principle of social justice or the common good

Ratio Decidendi

The statutory scheme for the compulsory acquisition of the fee simple by tenants under the Landlord and Tenant (Ground Rents) (No.2) Act, 1978 and the price-fixing mechanism under s.7 of the 1984 Act do not constitute an unconstitutional or unjust attack on the plaintiffs' property rights. The scheme pursues legitimate objectives of social justice and the common good, including the protection of tenants' investments and the modernisation of land law. The price mechanism, though not perfect, is not arbitrary or disproportionate, and the Oireachtas is entitled to determine the balance between property rights and the common good. The presumption of constitutionality has not been rebutted.

Court Disposition

Plaintiffs' constitutional challenge dismissed; statutory scheme upheld.

Orders

  • Circuit Court order affirmed as to entitlement to acquire fee simple, with variation in purchase price as previously determined.
  • No order as to costs specified in this judgment.