The High Court has ruled that mortgage enforcement action taken in 2018 against Aidan Kelly over properties in Bray and Delgany was not barred by the Statute of Limitations.
The preliminary ruling concerns two connected cases. Havbell DAC is seeking possession of Kelly’s residence at Brooklands, Kindlestown, Delgany. In separate proceedings, Kelly is suing Havbell, receiver Ken Fennell and the loan servicer over the receivership and 2020 sale of Unit 20, Beechwood Close, Boghall Road, Bray.
Kelly and his late wife took four loans from Irish Permanent in 1999. Two were secured on Brooklands and two on Unit 20. Repayments ceased in 2002. The original lender took no enforcement proceedings before assigning the loans and securities to Havbell in June 2015.
Kelly argued that the lender’s mortgage rights and the secured debt had therefore expired by 2014, after 12 years.
Mr Justice Barr rejected that argument. The court found that an open letter sent by Kelly’s solicitor in December 2006 acknowledged both the debts and the bank’s mortgage interests. The letter discussed arrears, repayment proposals and using property-sale proceeds to redeem the loans.
A second open letter, sent by Kelly’s accountant in April 2008, similarly proposed payment of arrears and mortgage debt from a proposed sale. The judge held that each amounted to a valid statutory acknowledgement, restarting the 12-year limitation period.
That meant Havbell was still within time when it appointed Fennell as receiver over Unit 20 in June 2018 and commenced possession proceedings over Brooklands in August 2018.
The court separately held that statements made during without-prejudice settlement negotiations could not be used as statutory acknowledgements of debt or title. Such protection exists to allow parties to negotiate settlements freely.
The ruling decides only the limitation issue. Kelly’s other claims, including allegations concerning the receiver’s sale and an alleged €1 million settlement agreement, remain unresolved.