The High Court has refused an appeal by Philip Sheridan against an interlocutory injunction concerning rent from an apartment in Ballyconnell, Co Cavan, and affirmed the Circuit Court’s order. The underlying dispute over ownership of the apartment’s 500-year lease is due to be heard by the Circuit Court in December 2022.
Macray Properties Ltd has been registered as full owner of the leasehold interest since 24 March 2021. The company said Sheridan had interfered with its rights by directing a tenant to pay him and later installing other tenants and collecting rent. Sheridan disputed the company’s title, arguing that the transfer from charge holder Promontoria Scariff DAC to Tyra Properties Ltd was ineffective without a court order for possession.
The High Court’s decision concerned interim relief pending trial, not final determination of ownership. Justice Garrett Simons said the company had shown a serious issue to be tried and also met the higher threshold of a strong case likely to succeed, without deciding whether the injunction should be classified as mandatory or prohibitory.
The judge identified two difficulties with Sheridan’s proposed defence. He had not sought rectification of the Land Registry folio, either in separate proceedings or by counterclaim. The judge also said the argument that a court order was required before the charge holder could sell appeared to misunderstand the registered charge: the mortgage deed gave the charge holder a power of sale that did not depend on first obtaining an order for possession. The trial judge will determine the defence at the full hearing.
In weighing the balance of justice, the High Court noted that the Circuit Court had directed rents collected by the company to be held in a separate client ledger until trial. That arrangement would preserve the funds if Sheridan succeeds. The judge also said refusing an injunction would leave an apparent breach of the registered owner’s rights without remedy and temporarily suspend the effect of the statutory register, which identifies the company as owner.
The High Court affirmed the Circuit Court injunction and refused the appeal. It said the rent escrow arrangement should continue until trial. The judge will hear the parties on whether provisions requiring Sheridan to deliver up keys and provide letting records remain necessary, as he understood those requirements had already been met. The judge’s provisional view was that the company was entitled to costs; argument on costs and the precise form of the order was listed for 25 July 2022.