Farrell v Promontoria (Aran) Ltd. & anor [2018] IEHC 748 (18 December 2018)

Farrell v Promontoria (Aran) Ltd. & anor [2018] IEHC 748 (18 December 2018)

There is a serious issue to be tried as to the enforceability of the 2003 mortgage, particularly given the correspondence suggesting the original loan was discharged and the unusual handling of security in subsequent facility letters. Damages are not an adequate remedy for the plaintiff, whose only economic interest is in the property. The balance of convenience favours maintaining the status quo and granting the interlocutory injunction.

Citation
[2018] IEHC 748
Parties
Plaintiff: Patrick Farrell; First Defendant: Promontoria (Aran) Limited; Second Defendant: Ken Fennell
Jurisdiction
Ireland
Judgment Date
18 December 2018
Procedural Posture
Application for Interlocutory Injunction / Interlocutory
Outcome
Interlocutory injunction granted
Legal Topics
Enforceability of Mortgage, Interlocutory Injunction, All Sums Due Mortgage, Receiver Appointment, Adequacy of Damages, Balance of Convenience, Contra Proferentem Rule, Equity of Redemption
Property Law Banking Law Equity Enforceability of Mortgage Interlocutory Injunction All Sums Due Mortgage Receiver Appointment Adequacy of Damages +3 more

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Parties

Patrick Farrell

Plaintiff

Promontoria (Aran) Limited

First Defendant

Ken Fennell

Second Defendant

Procedural Posture

Application for Interlocutory Injunction / Interlocutory

Legal Issues

  1. 1 Whether the 2003 mortgage is enforceable against the plaintiff's property in the circumstances
  2. 2 Whether an interlocutory injunction should be granted restraining the sale or interference with the plaintiff's property
  3. 3 Whether damages are an adequate remedy for the plaintiff

Ratio Decidendi

There is a serious issue to be tried as to the enforceability of the 2003 mortgage, particularly given the correspondence suggesting the original loan was discharged and the unusual handling of security in subsequent facility letters. Damages are not an adequate remedy for the plaintiff, whose only economic interest is in the property. The balance of convenience favours maintaining the status quo and granting the interlocutory injunction.

Court Disposition

Interlocutory injunction granted

Orders

  • Interlocutory injunction restraining the defendants from selling, marketing, assigning, transferring, or disposing of the plaintiff's property at Belmont, Drumsna, Co. Leitrim until further order.
  • Interlocutory injunction directing the defendants to vacate the plaintiff's property forthwith.