The High Court struck out proceedings against a charge-holder in a dispute over three unfinished Templeogue houses, but refused applications to dismiss claims against a former company director and secured lenders. The ruling addressed whether the pleaded claims could proceed, not whether they were proved.
De Xian Wang agreed in October 2017 to buy three houses from Ladywell Homes Limited for €2.47 million. He paid deposits totalling about €1.236 million, which the judgment says he agreed could be released to Ladywell to finance construction. The houses were due to be completed for closing in October 2018.
Wang’s proposed amended claim alleges that, after construction stalled, a director, Derek Byrne, told him in September 2018 that paying the kitchen supplier €32,000 for each house would allow outstanding work to be completed and the sales to close. Wang entered supplemental agreements and paid the supplier €96,000 in October 2018. The judgment records these as allegations, not findings.
The houses remained incomplete. In May 2020 a receiver, Myles Kirby, was appointed over Ladywell’s Templeogue lands by lenders holding security for debts owed by the company. Wang sought orders including specific performance of the sale contracts, declarations concerning his interests in the properties, and damages. Defendants who had brought motions asked the court to strike out or dismiss the claims against them.
Justice Brian O’Moore struck out the proceedings against Brian Murphy, whose capped €150,000 charge ranked behind the lenders’ charges. Murphy had provided signed partial discharges for use in a sale, and his counsel accepted that he was unlikely to receive any money from the properties. The judge found that the pleaded case alleged no wrongdoing by Murphy and did not make out the requirements for unjust enrichment. The claims against him were bound to fail and disclosed no cause of action in their pleaded form.
The court refused Byrne’s application. Wang’s amended pleading alleges that Byrne personally assumed responsibility for representations about delays, completion and Ladywell’s ability to pay its debts. The judge held that the claim was arguable and required the factual examination available at trial. He stressed that this did not mean Wang would necessarily succeed.
The court also refused the lenders’ and receiver’s application. The issues included whether Wang acquired a beneficial interest under the contracts, the priority of competing interests, what the lenders knew about the sales and payments, and whether they were unjustly enriched. The judge said those questions were unsuitable for resolution on a strike-out motion. The parties were to be heard on the costs of the motions on 20 July 2021.