The High Court has declared that Desmond Maughan has no interest in two parcels of land near Roscommon Town and ordered the Registrar of Titles to cancel a caution he had registered against them.
In a judgment delivered on 2 July 2008, Mr Justice Brian McGovern found that the purchase was between plaintiff George Golden and Declan Flynn, each of whom was registered as owner of an undivided half share. The court also issued an injunction restraining Maughan from claiming an interest in the lands.
The dispute arose after Flynn bought about 11.4 acres at auction on 23 June 2004 for €1.55 million. Golden said he had agreed with Flynn to participate and finance the purchase equally. He testified that Maughan twice told him he was not involved. Flynn supported Golden’s account. Maughan denied this and said he was part of the deal.
The judge found Golden honest and credible and accepted his evidence that Maughan had said he was not involved. The judgment also referred to bank documents showing that the €1.35 million balance was advanced to Flynn and Golden, and that the land was registered in their names as tenants in common in equal shares.
A separate €155,000 short-term loan for the deposit had been made to Flynn and Maughan. The judge accepted that the deposit money was likely a loan from the Flynn-Maughan partnership to Flynn, rather than a gift. He found that the borrowing did not make Maughan a party to the land purchase. Any obligation by Flynn to account to Maughan or the partnership for the loan could be addressed in separate proceedings between them.
Maughan’s caution, registered in 2006 against Flynn’s interest, required notice before a dealing with that share could be registered. The court found that it could hinder a sale and therefore affected Golden, even though the caution was not entered against Golden’s share. The judge rejected Golden’s estoppel argument, finding no evidence that he had acted to his detriment in reliance on Maughan’s statements.
The court made no further order on the remaining relief sought because Golden had not established entitlement to it on the evidence. Flynn had already been struck out as a defendant after Golden conceded that no case had been made against him; the question of Flynn’s costs was adjourned until the action’s final determination.