The High Court has ordered Everyday Finance DAC and two receivers to produce the original deeds documenting a loan transfer and a change of receivers for inspection before trial, in proceedings challenging the lender’s title to a debt and mortgage.
Mr Justice Cregan made the order on an application by Matthew Wales under Order 31, rule 18 of the Rules of the Superior Courts. The documents are a deed of novation of receivers dated 19 July 2019 and a global deed of transfer dated 14 July 2019. Redacted copies had been exhibited in affidavits for an interlocutory injunction motion.
Wales’s proceedings challenge Everyday Finance’s title to a debt he incurred with Allied Irish Banks plc (AIB), its title to his mortgage with AIB, and the receivers’ actions. The defendants deny his claims. They say AIB has separate High Court proceedings seeking summary judgment on the debt and possession of the property; those proceedings have been remitted to plenary hearing and have not yet been heard.
The defendants accepted that Everyday Finance would need to prove its title and the receivers’ valid appointment at trial, and that the originals would be produced then. They opposed inspection beforehand, arguing the deeds were documents of title. The judge said the relevant test under rule 18 was whether inspection was necessary for the fair disposal of the proceedings or to save costs. He found the deeds relevant and material, and said their status as title documents was not a reason to refuse inspection.
On the deed of novation, the judge said Wales had raised reasonable concerns on affidavit about aspects of its validity or enforceability. He found inspection necessary for fair disposal and ordered inspection of the original. He also considered that the deed did not relate to the defendants’ title.
On the global deed of transfer, Wales raised concerns about whether company seals had been affixed and whether the signatories were authorised bank officers. The judge said advance inspection could avoid a trial adjournment to call witnesses to address those matters, saving time and costs. Although he considered the deed related to Everyday Finance’s title to the mortgage, he held that this did not justify refusing inspection.
The judge directed production of both originals before the matter is set down for trial. He noted they were held by a firm of solicitors in the UK and arrangements would be needed to send them to the defendants’ solicitors in Ireland. The plaintiff did not object to redacting the names of other borrowers from the global deed, but objected to other redactions. The judge said he would discuss with counsel whether the court should first inspect unredacted versions and decide whether any currently redacted clauses should be disclosed. The order therefore directed inspection of the originals while leaving the scope of any further unredaction for consideration.