The High Court continued interim protection for a Wexford farmer’s lands while the parties discussed how to deal with an unpaid judgment debt. Mr Justice Dignam said he was disposed to granting injunctions against two joint receivers, but made that relief subject to arrangements for discharging the judgment. He adjourned the proceedings so the necessary steps could be discussed, with the interim injunction continuing during that period.
Martin Doran sought orders preventing Luke Charleton and Andrew Dolliver from taking possession of or controlling the lands, restricting his use of them, or holding themselves out as receivers. The court said declarations challenging the validity and scope of the receivership could not be granted on this interlocutory application; the application concerned interim injunctions.
The lands are farmland in County Wexford, which Doran had farmed since inheriting them in 1972. Everyday Finance DAC appointed the defendants as receivers in February 2021 under a 2006 mortgage. In a letter to Doran, the receivers said the property was under their control, that management powers rested with them and that he could no longer deal with the property without their authority.
The judge found a fair question to be tried over whether the mortgage gave the receivers powers to control or manage the farm. The mortgage did not expressly confer those powers, and the appointment deed did not establish a separate appointment as mortgagee’s agents. At this stage, the receivers’ powers appeared limited to receiving income and giving receipts for it. The judge also found a fair question over whether the receivers’ appointment was properly grounded in the debt, including the effect of an earlier judgment in favour of Allied Irish Banks and the absence of Everyday’s substitution in those judgment proceedings. He did not finally decide those issues.
The judge found no fair question that the receivers had threatened to take possession. He also rejected, at this stage, the argument that the appointment was necessarily abusive merely because other proceedings concerning the debt and lands existed. Everyday had been substituted for AIB in possession and lien proceedings, but not in the summary proceedings in which the judgment was made.
Doran’s unpaid judgment debt was €209,696.23. He said €130,000 was held by his solicitor and that a further sum of about €80,000 had been available. The judge considered that the balance of justice required the money to be applied towards the judgment before the injunctions could be granted. As Everyday had not been substituted in the summary proceedings and Doran had not been told where payment should go, the court allowed time for the parties to make arrangements. The judgment did not finally determine the receivers’ powers or the validity of their appointment.