Moorview Developments Ltd & Ors -v- First Active PLC & Ors [2009] IEHC 367 (17 July 2009)

Moorview Developments Ltd & Ors -v- First Active PLC & Ors [2009] IEHC 367 (17 July 2009)

Clause 4.1.6 of the debenture created a first fixed charge over all after-acquired immovable property of Salthill Properties Limited, effective immediately upon acquisition and irrespective of the status of the floating charge. Therefore, at all material times, First Active PLC held a fixed charge over all relevant assets, and Kanwell Developments Limited's judgment mortgages ranked behind First Active's security. No well charging order could be made in favour of Kanwell, and the deferred aspects of the main proceedings must be dismissed.

Citation
[2009] IEHC 367
Parties
Plaintiff: Moorview Developments Limited; Plaintiff: Salthill Properties Limited; Plaintiff: Valebrook Developments Limited; Plaintiff: Springside Properties Limited; Plaintiff: Drake S. C. Limited; Plaintiff: Malldro S. C. Limited; Plaintiff: The Poppintree Mall Limited; Plaintiff: Blondon Properties Limited; Defendant: First Active PLC; Defendant: Ray Jackson; Defendant: Bernard Duffy; Applicant (in Related Proceedings): Kanwell Developments Limited
Jurisdiction
Ireland
Judgment Date
17 July 2009
Procedural Posture
Civil / Post Main Judgment, Determination of Deferred Issues and Well Charging Application
Outcome
Plaintiffs' deferred claims and Kanwell's well charging application dismissed.
Legal Topics
Fixed and Floating Charges, After Acquired Property, Priority of Security Interests, Judgment Mortgages, Well Charging Orders
Banking and Finance Property Law Company Law Fixed and Floating Charges After Acquired Property Priority of Security Interests Judgment Mortgages Well Charging Orders

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Parties

Moorview Developments Limited

Plaintiff

Salthill Properties Limited

Plaintiff

Valebrook Developments Limited

Plaintiff

Springside Properties Limited

Plaintiff

Drake S. C. Limited

Plaintiff

Malldro S. C. Limited

Plaintiff

The Poppintree Mall Limited

Plaintiff

Blondon Properties Limited

Plaintiff

First Active PLC

Defendant

Ray Jackson

Defendant

Bernard Duffy

Defendant

Kanwell Developments Limited

Applicant (in Related Proceedings)

Procedural Posture

Civil / Post Main Judgment, Determination of Deferred Issues and Well Charging Application

Legal Issues

  1. 1 Whether the debentures executed by Salthill Properties Limited in favour of First Active PLC created a fixed charge over after-acquired property, including three contested parcels of land.
  2. 2 Whether the crystallisation of a floating charge affected the operation of the fixed charge over after-acquired property.
  3. 3 Whether Kanwell Developments Limited was entitled to a well charging order on foot of its judgment mortgages against Salthill Properties Limited.

Ratio Decidendi

Clause 4.1.6 of the debenture created a first fixed charge over all after-acquired immovable property of Salthill Properties Limited, effective immediately upon acquisition and irrespective of the status of the floating charge. Therefore, at all material times, First Active PLC held a fixed charge over all relevant assets, and Kanwell Developments Limited's judgment mortgages ranked behind First Active's security. No well charging order could be made in favour of Kanwell, and the deferred aspects of the main proceedings must be dismissed.

Court Disposition

Plaintiffs' deferred claims and Kanwell's well charging application dismissed.

Orders

  • Deferred aspects of the main proceedings dismissed.
  • Kanwell well charging proceedings dismissed.