The High Court has ordered Golden Door Lending DAC to discharge security held over two property companies after finding that the lender failed to provide a clear redemption figure and breached its agreement over the release of house-sale documents.
In a judgment delivered on 20 July 2023, Ms Justice Eileen Roberts set the redemption figure at €9,745.23. She awarded the plaintiffs damages for the lender’s failures and directed that the damages be set off against that figure, leaving no further amount payable by either side. Golden Door must discharge the security at its own cost within seven days; if it does not, the security will be deemed satisfied or vacated. The judge also released the plaintiffs’ solicitors from undertakings over money held by them and ordered Dylan Bi not to threaten or coerce the plaintiffs or their officers or agents.
The dispute arose from a €1 million facility agreed in 2018 to fund five houses at Ard Aoibhinn, Inishannon, County Cork. Golden Door advanced €777,710. The agreement required it to arrange executed partial-release deeds for each house, but the judge found it failed to provide them in advance. Delays followed in completing sales.
The court found Golden Door had not provided a redemption statement explaining the amount due, despite repeated requests. It accepted PwC’s calculation of €184,745.23 as the balance on 5 November 2020, excluding a €10,000 exit fee. After repayments, the remaining redemption figure was €9,745.23. Because the lender did not engage with the PwC calculation or supply a clear figure, the judge ruled it could not charge further interest arising from its own delay after 6 November 2020.
The damages included €1,300 plus VAT for PwC’s calculation and €4,617.55 in additional interest linked to a delayed sale of house 42. The judge also accepted evidence that the failure to provide a release deed affected the sale of house 41, but did not state a separate damages amount for that loss in the calculation described in the judgment. The damages roughly offset the redemption figure.
The plaintiffs had also claimed losses, including a missed development opportunity in Kinsale. The judge found there was no obligation to release the remaining security until the redemption sum had actually been paid. The plaintiffs had offered to remit €9,745.23 but did not pay it; money held by their own solicitors did not amount to repayment. The court therefore rejected damages for lost opportunity arising from inability to raise further finance.
The case was listed for mention on 28 July 2023 to check whether the security had been released and settle the final form of the order. Costs were also left for consideration.