The High Court has ruled that Dundalk solicitor Declan McCourt may continue to claim a beneficial interest in properties at Hill Street and Marsh’s Upper, while rejecting his claim to a legal ownership interest in the lands.
The dispute concerns the former Reynolds Electronic site at Hill Street and former Boyne Motor site at Marsh’s Upper. Francis Tiernan bought the properties in early 2001 for IR£1.5 million, with IR£1.35 million borrowed from Irish Nationwide Building Society and IR£150,000 provided personally.
Mr McCourt alleges that he and Mr Tiernan reached an agreement in January 2001 under which payments made by Mr McCourt would give him a proportionate interest in the properties. He says he subsequently paid €309,666.14 for or on Mr Tiernan’s behalf. Mr Tiernan disputes both the alleged agreement and the source of those funds, maintaining that money paid out by Mr McCourt came from client funds already belonging to him.
Mr Justice Clarke held that those disputed matters require a full trial. The judge found an arguable case that Mr McCourt used his own funds, but expressed difficulty with his claim to a 50% interest. Based on the pleaded agreement tying his interest to the property’s January 2001 market value, the court said the highest sustainable claim was a percentage just under one sixth.
The court struck out only the claim to a legal interest. A possible beneficial interest remained arguable, meaning the lis pendens registered against the property could stay in place for now.
Mr McCourt was also ordered to honour his undertaking to lodge the title deeds with Irish Nationwide. The court declined to grant a Mareva-type asset-freezing order at this stage because the existing lis pendens provided protection.
If there is a bona fide open-market sale, the judge indicated that the lis pendens could be removed provided sufficient sale proceeds are secured to cover Mr McCourt’s claimed beneficial share and disputed stamp-duty payment.