The High Court has ruled that a 1999 transfer of a County Clare farm should be set aside, finding that the overall transaction was improvident and oppressive. The ruling followed a six-day hearing on claims brought by James Keating against Catherine Keating and Patrick Keating.
The court rejected Keating’s claims that he had been forced or unduly influenced to sell the land. It found that he had pursued the sale to raise money to discharge debt and qualify for an early retirement pension. The judge also found that allegations he had been assaulted by Patrick Keating Senior were not proven, and that Patrick Keating had not beaten, bullied or intimidated him to procure the sale before he gave his solicitor instructions in March 1999.
However, the judge found that Keating was seriously disadvantaged after agreeing to sell. His health was poor, he did not understand the full consequences for his cattle, and he was reluctant to remove them from the farm. The court found that Patrick Keating, with his mother’s approval, exploited the situation after Keating was contractually bound. It also found Keating had not received independent legal advice in the circumstances.
The court found on the balance of probabilities that Keating’s signature on a May 1999 transfer of suckler cow premium quota was forged by one of the defendants. No payment was made for the quota. The judge rejected the defendants’ account that the wider deal included the quota and 18 cattle, and found that the land, house subject to Keating’s lifetime right of residence, farm buildings, quota and cattle were benefits obtained for a total price of IR£45,000. That overall deal was found to be unfair and oppressive.
The court said the land transfer should be set aside, but the parties had not addressed how the transaction could be unwound. Subject to further submissions, the judge proposed that Keating repay €50,790, representing IR£40,000 paid for the land, by set-off against sums due to him or otherwise. In return, the court proposed ordering that he be registered as owner, that the registered charge for the remaining IR£5,000 be discharged, and that the land certificate be returned free of any charge or lien. These were proposed terms, not a final order on the mechanics of restoration.
The judge also ordered the first defendant to account for €39,527.60 in quota benefits and awarded €14,000 for loss of cattle and machinery. A separate €12,500 award was made for personal injuries arising from an admitted incident in which Patrick Keating broke glass at Keating’s home after being served with the proceedings. The court declined aggravated, exemplary or punitive damages. It also rejected a claim for lost farming profits and found no basis to award the cost of restoring water and sanitary facilities.
The judgment was delivered on 24 August 2009.