Burns -v- Bank of Ireland & Ors [2007] IEHC 318 (04 May 2007)

Burns -v- Bank of Ireland & Ors [2007] IEHC 318 (04 May 2007)

The Gardaí were entitled to issue the direction under s. 31(8) but, once it was clear by end of August 2005 that no prosecution would follow, they were under a duty to withdraw it; failure to do so was ultra vires. The Bank of Ireland was not liable as it was obliged to comply with the direction to avoid criminal prosecution. The absence of a statutory time limit does not render s. 31(8) unconstitutional; wrongful administration does not affect the statute’s validity.

Citation
[2007] IEHC 318
Parties
Plaintiff: Robert Burns; First Named Defendant: The Governor and Company of the Bank of Ireland; Second Named Defendant: Commissioner of An Garda Síochána; Third Named Defendant: Ireland; Fourth Named Defendant: The Attorney General
Jurisdiction
Ireland
Judgment Date
04 May 2007
Procedural Posture
High Court Civil Action / Judgment After Full Hearing
Outcome
Plaintiff’s claims against the Bank of Ireland dismissed; declaration that Gardaí acted ultra vires by not withdrawing the direction after deciding not to prosecute; statute upheld as constitutional.
Legal Topics
Money Laundering, Bank Account Freezing, Separation of Powers, Property Rights, Statutory Interpretation, Ultra Vires, Immunity From Prosecution
Constitutional Law Banking Law Criminal Law Money Laundering Bank Account Freezing Separation of Powers Property Rights Statutory Interpretation +2 more

Case Brief

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Parties

Robert Burns

Plaintiff

The Governor and Company of the Bank of Ireland

First Named Defendant

Commissioner of An Garda Síochána

Second Named Defendant

Ireland

Third Named Defendant

The Attorney General

Fourth Named Defendant

Procedural Posture

High Court Civil Action / Judgment After Full Hearing

Legal Issues

  1. 1 Whether s. 31(8) of the Criminal Justice Act 1994 (as amended) is unconstitutional for lack of time limits and judicial oversight
  2. 2 Whether the Bank of Ireland is liable to the plaintiff for refusing to release funds on Garda direction
  3. 3 Whether the Gardaí acted ultra vires by maintaining the freeze after deciding not to prosecute

Ratio Decidendi

The Gardaí were entitled to issue the direction under s. 31(8) but, once it was clear by end of August 2005 that no prosecution would follow, they were under a duty to withdraw it; failure to do so was ultra vires. The Bank of Ireland was not liable as it was obliged to comply with the direction to avoid criminal prosecution. The absence of a statutory time limit does not render s. 31(8) unconstitutional; wrongful administration does not affect the statute’s validity.

Court Disposition

Plaintiff’s claims against the Bank of Ireland dismissed; declaration that Gardaí acted ultra vires by not withdrawing the direction after deciding not to prosecute; statute upheld as constitutional.