By Ruth Mercer
The High Court has cleared Ulster Investment Bank to take possession of 119.588 acres at Inchigaggin, County Cork, so that a court-ordered sale dating back to a 1987 debt judgment can proceed.
The dispute arose from financing provided to Bula Limited for development of a lead and zinc mine at Navan, County Meath. Rockrohan Estate Limited, controlled by Richard Wood, guaranteed Bula's borrowings under a 1981 debenture, with its liability capped at £1 million plus interest and secured against the Cork lands.
After Bula defaulted, the High Court in February 1987 declared £1 million principal and £267,147.02 interest well charged on Rockrohan's land and ordered a sale if the debt remained unpaid. Enforcement was subsequently delayed for years while extensive related litigation involving Bula, its directors and the banks progressed.
In the applications decided in 2009, Rockrohan sought to set aside or vary the earlier order. It argued, among other points, that the discharge of Wood's separate personal guarantee ended Rockrohan's liability, that the bank's rights had expired under the Statute of Limitations and that Rockrohan's continued occupation amounted to adverse possession.
Ms Justice Irvine rejected those arguments.
The court held that the corporate guarantee was expressly additional to other guarantees and securities. Payment of Wood's personal guarantee therefore did not discharge Rockrohan's separate obligation.
It also found that the bank's application for possession was not a new action on the old judgment. Rather, possession was an ancillary step needed to enforce the existing court order for sale. The statutory time limits relied upon by Rockrohan therefore did not extinguish the bank's right to proceed or restrict post-order interest to six years.
The adverse-possession argument also failed because the bank had never owned or occupied the lands; Rockrohan had remained their owner and occupier throughout.
The court further held that complaints over the treatment of CRH shares and dividends could not reopen the sums fixed by the 1987 order, which had become final on that issue.
All relief sought by Rockrohan was refused. Ulster Investment Bank was granted the relief sought in its possession motion.