Degrevement of the Immovable Property of Mrs Powell [2019] JRC 004 (17 January 2019)

Degrevement of the Immovable Property of Mrs Powell [2019] JRC 004 (17 January 2019)

A tenant après dégrèvement is only required to pay the capital sum and up to three years' arrears of interest as specified in the registered Billet or act of hypothec, not additional legal costs incurred by secured creditors unless those costs are within the face value of the registered sum or separately secured by judgment. The obligations of the tenant après dégrèvement are governed by the 1880 Law, not by the underlying loan documentation. Attournés are entitled to recover their reasonable costs from the tenant après dégrèvement, subject to the Court's regulation.

Citation
[2019] JRC 004
Parties
Representor/attourné: Oliver Passmore; Representor/attourné: Julie Melia; Debtor: Caroline Beverley Elizabeth Powell (née Chambers); Intended Tenant: Stephen Hill trading as Highbury Collection Services; Assignor to Intended Tenant: James Gray trading as James Gray Electrics; Secured Creditor: Acorn Finance Limited; Secured Creditor: Charles Thacker and others practicing as Viberts; Secured Creditor: Jersey Home Loans (JHL)
Jurisdiction
Jersey
Judgment Date
17 January 2019
Procedural Posture
Representation (civil, Property/debt Enforcement) / Judgment on Legal Issues Arising From Dégrèvement Process
Outcome
Determination in favour of the Intended Tenant on the principal issues; Attournés entitled to recover their reasonable costs from the tenant après dégrèvement.
Legal Topics
Dégrèvement Procedure, Judicial Hypothec, Secured Creditor Rights, Tenant Après Dégrèvement Obligations, Legal Costs in Enforcement, Interest on Secured Debts
Property Law Bankruptcy/insolvency Secured Transactions Dégrèvement Procedure Judicial Hypothec Secured Creditor Rights Tenant Après Dégrèvement Obligations Legal Costs in Enforcement +1 more

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Parties

Oliver Passmore

Representor/attourné

Julie Melia

Representor/attourné

Caroline Beverley Elizabeth Powell (née Chambers)

Debtor

Stephen Hill trading as Highbury Collection Services

Intended Tenant

James Gray trading as James Gray Electrics

Assignor to Intended Tenant

Acorn Finance Limited

Secured Creditor

Charles Thacker and others practicing as Viberts

Secured Creditor

Jersey Home Loans (JHL)

Secured Creditor

Procedural Posture

Representation (civil, Property/debt Enforcement) / Judgment on Legal Issues Arising From Dégrèvement Process

Legal Issues

  1. 1 Whether a tenant après dégrèvement is required to pay legal costs incurred by secured creditors as part of the secured debt
  2. 2 Whether a tenant après dégrèvement is only required to pay three years' interest and the basis for such interest
  3. 3 Whether failure by the intended tenant to pay amounts due prior to confirmation of tenancy requires the Attournés to summon the tenant or treat the acceptance as renounced

Ratio Decidendi

A tenant après dégrèvement is only required to pay the capital sum and up to three years' arrears of interest as specified in the registered Billet or act of hypothec, not additional legal costs incurred by secured creditors unless those costs are within the face value of the registered sum or separately secured by judgment. The obligations of the tenant après dégrèvement are governed by the 1880 Law, not by the underlying loan documentation. Attournés are entitled to recover their reasonable costs from the tenant après dégrèvement, subject to the Court's regulation.

Court Disposition

Determination in favour of the Intended Tenant on the principal issues; Attournés entitled to recover their reasonable costs from the tenant après dégrèvement.

Orders

  • Tenant après dégrèvement is not required to pay legal costs of secured creditors beyond the capital sum and three years' interest as specified in the registered Billet or act of hypothec.
  • Legal costs of secured creditors are only secured if within the face value of the registered sum or separately secured by judgment.