Judgment: 2014-02-07 · Court archive

High Court allows councillor’s appeal against receiver over future payments

The court held that equitable execution could not reach the councillor’s statutory entitlement to future emoluments, and said an instalment order would have been a more straightforward route.

High Court · [2014] IEHC 59

Who, what, where, when and why

Who
  • Eamon Flanagan
  • Maresa Prendeville (Plaintiff)
  • Thomas Crosby
  • Michael McNamara
  • Kieran O’Brien (Defendant)
  • Roscommon County Council
What

The court held that equitable execution could not reach the councillor’s statutory entitlement to future emoluments, and said an instalment order would have been a more straightforward route.

Where

Places mentioned in the report

  • Roscommon County Council
  • Roscommon
When

Judgment:

Other dates in the report
  • 20 March 2012

    In September 2011, the County Registrar made a conditional order appointing a receiver over money Roscommon County Council owed Crosby as a councillor, including future emoluments. The proposed arrangement would have directed €500 a month to the receiver. The order was made absolute in December 2011. On 20 March 2012, a Circuit Court judge also made it absolute, reducing the monthly payment to €400.

Why

Reasons reported in the judgment

The High Court allowed a councillor’s appeal against an order directing Roscommon County Council to pay part of his future emoluments to a receiver appointed for judgment creditors. The court held that established case law prevented equitable execution against his statutory right to those payments.

The High Court allowed a councillor’s appeal against an order directing Roscommon County Council to pay part of his future emoluments to a receiver appointed for judgment creditors. The court held that established case law prevented equitable execution against his statutory right to those payments.

Eamon Flanagan and Maresa Prendeville obtained a November 2010 judgment against Thomas Crosby, Michael McNamara and Kieran O’Brien for €8,955.53 plus costs, following a claim for breach of contract. The costs were later taxed at just under €23,000. By September 2011, the total due was €31,774.40. The judgment remained largely unpaid, apart from a few payments.

In September 2011, the County Registrar made a conditional order appointing a receiver over money Roscommon County Council owed Crosby as a councillor, including future emoluments. The proposed arrangement would have directed €500 a month to the receiver. The order was made absolute in December 2011. On 20 March 2012, a Circuit Court judge also made it absolute, reducing the monthly payment to €400.

Crosby appealed, arguing that the law did not permit a receiver to be appointed over future salary or emoluments and that the procedure should not displace the statutory enforcement process. The High Court considered prior decisions holding that equitable execution was generally confined to property in which a debtor had an equitable interest that could not be reached through ordinary legal process. It also considered a decision allowing a receiver over potential damages, but distinguished that contingent claim from regular future salary or emoluments.

Justice Hogan said he saw no principled reason to preserve a sharp distinction between legal and equitable rights in this area, but concluded that he was bound by the established Irish authorities. Crosby’s entitlement to council payments arose from a statutory right at law, rather than an equitable interest. On that basis, the judgment creditors were not entitled to the receiver order.

The judge gave a further reason for refusing the relief: requiring the council to arrange monthly payments to a receiver would impose an administrative burden on a third party. He said an application to the District Court for an instalment order under the Enforcement of Court Orders Acts 1926–2009 would have been more straightforward. The appeal was allowed. The judgment does not state that the underlying debt was paid or otherwise discharged.

Read the original court judgment

Something looks wrong?

Highlight the relevant passage or flag this article for review. Review requests do not immediately change the report.

Email a correction request

Request a review