The High Court has ruled that the Dartry family home of James and Patricia Kenny may be sold if debts secured by Trinity College against Mr Kenny's share are not paid within one year.
Miss Justice Laffoy found €663,239.34 was due to the Provost, Fellows and Scholars of Trinity College as of October 28, 2009 under three judgment mortgages, with interest continuing at €105.63 per day.
The mortgages arose from legal costs awarded against Mr Kenny following proceedings he had brought against Trinity College in 2000, 2002 and 2003. They affected only his interest in two jointly owned properties: the family home at 4 Temple Road, Dartry, Dublin, and a holiday bungalow at Portnoo, Co Donegal.
The court reached different conclusions for the two properties.
For the Donegal property, which is registered land, the judge held that Trinity's judgment mortgages gave it a charge over Mr Kenny's interest but did not confer the type of possessory interest needed to seek a sale in lieu of partition under the Partition Act 1868. Trinity was therefore entitled only to a declaration that its debt was well charged on Mr Kenny's interest, not to an order selling the property.
The position was different in Dartry because that property had unregistered title. The court held that Trinity could invoke the statutory jurisdiction to seek sale of the jointly owned property.
Mrs Kenny's position as an innocent co-owner and the property's status as the couple's family home were considered. The court noted evidence valuing the house at about €1.5 million. After discharge of the Bank of Ireland mortgage, Mrs Kenny's share was estimated at about €500,000, which the judge considered sufficient to provide alternative accommodation.
The court therefore ordered sale of the Dartry property if the debt remained unpaid after one year. The judge stressed that settlement before then would be desirable, particularly because the debt was increasing by almost €40,000 annually.