AIB Group (UK) Plc v McGovern [2013] NIMaster 20 (14 January 2013)

AIB Group (UK) Plc v McGovern [2013] NIMaster 20 (14 January 2013)

The solicitor's undertaking to hold the title deeds in trust for the plaintiff created an equitable charge over the defendant's interest in the property. However, only the increased trading overdraft facility, not the full facility letter, was secured by the charge, as the defendant did not accept the other terms.

Citation
[2013] NIMaster 20
Parties
Plaintiff: AIB Group (UK) PLC; Defendant: Adrian McGovern
Jurisdiction
Northern Ireland
Judgment Date
14 January 2013
Procedural Posture
Originating Summons / Judgment on Application for Declaration, Sale, and Possession
Outcome
Order granted in part
Legal Topics
Equitable Charge, Solicitor's Undertaking, Enforcement of Security, Interpretation of Facility Letters
Property Law Banking Law Equity Equitable Charge Solicitor's Undertaking Enforcement of Security Interpretation of Facility Letters

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Parties

AIB Group (UK) PLC

Plaintiff

Adrian McGovern

Defendant

Procedural Posture

Originating Summons / Judgment on Application for Declaration, Sale, and Possession

Legal Issues

  1. 1 Whether the solicitor's undertaking created an equitable charge over the defendant's property
  2. 2 What liabilities are secured by the equitable charge

Ratio Decidendi

The solicitor's undertaking to hold the title deeds in trust for the plaintiff created an equitable charge over the defendant's interest in the property. However, only the increased trading overdraft facility, not the full facility letter, was secured by the charge, as the defendant did not accept the other terms.

Court Disposition

Order granted in part

Orders

  • Declaration that the monies due under the trading overdraft facility (principal £24,313.30 and interest £3,243.62 as at 14 May 2012, with continuing interest and allowed costs) are charged by the equitable charge on the defendant's interest in 103 Windmill Heights, Enniskillen.
  • Order for sale of the property if the monies are not discharged within 3 calendar months from service, with possession to be given up for the purpose of sale.