The High Court has decided to make disposal orders over properties covered by a 1996 Proceeds of Crime Act order, following earlier rulings on ownership, funding and alleged injustice. The court rejected John Gilligan’s argument that the application was statute-barred. It also allowed for stays on some disposals and directed that Tracey Gilligan receive 20% of the net sale proceeds from a Lucan house.
The judgment, delivered by Mr Justice Feeney on 20 December 2011, followed section 3(3) hearings in which the respondents had contested the freezing order over properties. In a judgment delivered on 27 January 2011, the court addressed their claims about ownership, the source of purchase funds and injustice. Those findings, the judge said, could not be revisited at the later section 4 stage.
John Gilligan argued that the section 4 application was subject to a two-year limitation period under the Statute of Limitations 1957. The court held that the Act’s section 11(7) did not apply to proceedings under the Proceeds of Crime Act. It added that, even if the limitation provision applied, a section 4 claim could arise only after the section 3 order had been in force for seven years. On that basis, the applications were brought within two years of the earliest possible date.
Tracey Gilligan argued that the application concerning her house at 1 Willsbrook View, Lucan, was premature because the earlier ruling had varied the section 3 order. The court rejected that submission, holding that a variation did not create a new order or restart the seven-year period. It had previously found that about 20% of the house’s capital cost came from funds not derived from crime and that more than 80% came from proceeds of crime. After considering her personal circumstances and use of the property, the court concluded a sale would not cause injustice if she received 20% of the net proceeds.
Geraldine Gilligan sought to prevent disposal of her home at Mucklon, Enfield, County Kildare, citing her circumstances and her granddaughter’s need for accommodation. The court relied on its earlier finding that the purchase funds were entirely proceeds of crime and said the additional information did not change its injustice assessment. Darren Gilligan said he risked losing accommodation. The court said a stay could address that concern.
The court said it would make disposal orders for all properties listed in its January judgment. It directed the sale of the Willsbrook View property, with a receiver to arrange the sale, 20% of net proceeds to Tracey Gilligan and the remaining 80% to the Minister for Public Expenditure and Reform. It set a stay on that order until 31 May 2012. It also set a stay for Mucklon until that date and for 13 Corduff Avenue until 31 May 2011, to allow Geraldine and Darren Gilligan to seek alternative accommodation. The court said it would hear the parties on the orders’ terms.