The High Court entered judgment for Bank of Scotland plc in the sum of €18,583,175.38 and granted permanent injunctive relief restraining the trustees of the Victory Christian Fellowship from interfering with three properties. The court said it would hear submissions on the form of the order. The judgment was delivered by Mr Justice Gilligan on 29 November 2013.
The properties are Killininny House on Firhouse Road, Dublin 24; 35 Westland Row, Dublin 2; and Kilmacud House on Kilmacud Road Upper, Stillorgan. They had been mortgaged to the Bank as security for borrowing. The court recorded that the debt, including arrears and interest, stood at €18,583,175.38 as of 31 October 2013, and that the trustees did not dispute their indebtedness in that amount.
The trustees argued that the Bank appointed receivers after receiving information from their accountant about alleged fraudulent invoices connected with construction of the Victory Centre. They submitted that the Bank knew the information had been disclosed without their authority and that it was decisive in the appointment. The Bank said the principal reasons were the mounting arrears and the lack of progress in reducing the debt or securing alternative finance.
The court accepted the general tenor of evidence from the Bank’s witnesses that arrears and the lack of progress were the primary reasons for appointing receivers. It said any reliance on the alleged fraud issue could only have been of minor importance. The allegation remained unproven in these proceedings.
The judgment found that discussions between the parties about refinancing and a consensual solution had not produced an agreement. It also found no realistic prospect, on the evidence, of alternative financing from Bank of Ireland. The court could not determine whether the accountant had breached a duty of confidence: he was not a party or witness, and the evidence did not establish what duty he owed or whether his conduct was improper. The court therefore made no finding against him.
The Bank appointed receivers over the properties on 29 May 2013. After difficulties securing the premises, an interim injunction was granted on 31 May. The judgment records that the trustees did not comply with that interim order, but that their contempt was purged on 14 June after their apology was noted. The interlocutory injunction was later compromised on 25 July. The final judgment granted the debt award and permanent injunction, while leaving the form of the order for further submissions.