Judgment: 2020-12-10 · Court archive

Court of Appeal dismisses challenge to interim orders over Ranelagh hostel

The court said the lease dispute remains for a full High Court hearing and that its decision did not determine whether the lease was valid.

Court of Appeal (Civil); appeal from the High Court · [2020] IECA 352

Who, what, where, when and why

Who
  • Simon Coyle (Plaintiff)
  • Niall Hade (Defendant)
  • Link ASI Limited
  • ICS Building Society
  • Dublin City Council
  • Bank of Ireland Mortgage Bank
  • Robert Haughton (Judge)
What

The court said the lease dispute remains for a full High Court hearing and that its decision did not determine whether the lease was valid.

Where

Places mentioned in the report

  • Ranelagh
  • Dublin
When

Judgment:

Other dates in the report
  • 15 November 2018

    The court proposed no costs order for the application to add Link ASI Limited. It proposed that the respondents receive their appeal costs arising after the High Court order was corrected on 15 November 2018, with those costs stayed until the High Court proceedings are determined. Parties could seek a different costs order within 14 days of electronic delivery.

Why

Reasons reported in the judgment

The appeal court found no basis to overturn the interim orders and dismissed the appeal. It stressed that Hade remains bound by the order to pay €3,500 monthly to the receiver until the proceedings are determined. The court did not adjudicate whether payments were outstanding, but noted Hade had accepted that none had been made since February 2020 and advised that non-compliance could lead to enforcement proceedings.

The Court of Appeal has dismissed Niall Hade’s appeal against interim orders concerning a property at 7A Oakley Road, Ranelagh, where he operates a hostel for homeless people under arrangements with Dublin City Council. The underlying case remains to be decided at a full High Court hearing, and the appeal ruling did not determine whether Hade’s purported lease is valid.

The court also joined Link ASI Limited as an additional plaintiff after the Bank of Ireland and Bank of Ireland Mortgage Bank transferred their interests in the loan security and receiver arrangements. The judgment was delivered by Mr Justice Robert Haughton on 10 December 2020, with Donnelly and Collins JJ agreeing.

The dispute concerns loans made by ICS Building Society to three defendants, secured by a mortgage over property that includes 7A Oakley Road. The mortgage prohibited letting or transferring the property without the society’s prior written consent. The borrowers purported to lease it to Hade in June 2015 for an initial annual rent of €42,000. The Bank appointed Simon Coyle as receiver the following month.

In October 2018, the High Court made interim orders that allowed Hade to remain in occupation and run the hostel while the proceedings continued. He was required to pay the receiver €3,500 per month. An error in the order initially appeared to require additional payments received from Dublin City Council. The High Court later corrected it: Hade’s interim payment obligation was limited to €3,500 monthly, while the first three defendants were directed to account for and pay over rents and deposits.

Hade argued on appeal that the receiver had accepted the lease and that the plaintiffs were bound by it. The Court of Appeal said those arguments did not need to be decided in this appeal. It explained that the High Court judge’s comments about the lease at the interim hearing were provisional and could not determine the eventual trial. Hade remains entitled to advance his case about the lease’s validity and the receiver’s or Bank’s conduct at the full hearing.

The appeal court found no basis to overturn the interim orders and dismissed the appeal. It stressed that Hade remains bound by the order to pay €3,500 monthly to the receiver until the proceedings are determined. The court did not adjudicate whether payments were outstanding, but noted Hade had accepted that none had been made since February 2020 and advised that non-compliance could lead to enforcement proceedings.

The court proposed no costs order for the application to add Link ASI Limited. It proposed that the respondents receive their appeal costs arising after the High Court order was corrected on 15 November 2018, with those costs stayed until the High Court proceedings are determined. Parties could seek a different costs order within 14 days of electronic delivery.

Read the original court judgment

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