The Supreme Court has upheld an order granting Mars Capital Finance Ireland DAC possession of a mortgaged property at Kilmuckridge, Co Wexford, after ruling that the borrower was bound by a settlement agreement reached during earlier possession proceedings.
Samuel Walsh had argued that Mars' claim was defeated by the Statute of Limitations because repayments on the mortgage had stopped around 2007. He contended that, after the relevant limitation period expired, Mars' rights over the property had been extinguished and could not later be revived by agreement.
The property, Ballyvadden House, secured a €350,000 loan originally advanced by EBS Building Society in 2003. Mars acquired the loan and security in 2021 and began possession proceedings in August 2022.
In March 2023, while those proceedings were pending, the parties reached a settlement. Mars recorded outstanding secured obligations of €651,519.84 but agreed to accept €250,000 on specified terms. Walsh, who had legal advice, acknowledged the indebtedness and agreed that if he defaulted Mars could pursue the full secured obligations and apply for possession. He also confirmed that he had no claim against Mars or its predecessor arising from the loan facilities and waived any such claim.
Walsh subsequently made payments of €1,000 and €4,000 but did not comply with the settlement terms. The Circuit Court granted possession in June 2024 and the High Court dismissed his appeal.
Mr Justice Brian Murray, delivering the Supreme Court judgment, held that limitation provisions extinguishing mortgage rights do not prevent parties from genuinely compromising a dispute over whether those rights have expired. A borrower can agree, for good consideration, not to rely on rights under the Statute of Limitations.
The court found that Walsh's agreement went beyond merely acknowledging that Mars would seek possession. He expressly abandoned claims arising from the facilities, which encompassed his later assertion that Mars' mortgage rights had been extinguished.
The appeal was dismissed.