The High Court adjudicated Michael McDaid and Charles McDaid bankrupt on 12 April 2021 in two petitions brought by a creditor over a debt of €605,222. In a judgment delivered on 5 May, Mr Justice Humphreys also refused the debtors’ application for him to recuse himself.
The petitions arose from a High Court judgment of 10 December 2005 for €453,000 and a certificate of taxation dated 17 June 2019 for €152,222. The judgment identifies the petitioning creditor as David McLaughlin of Illinois, United States. It says the alleged act of bankruptcy in each case was failure to pay after service of a bankruptcy summons.
The court said the petitions were dealt with together and had been adjourned several times from December 2019. The debtors appeared, and the judge said their appearance cured any problems with service. The judgment records that they had not filed replying affidavits by the remote hearing on 15 March 2021.
At the hearing on 12 April, the judge considered the debtors’ written submission and an attachment, as well as the pleadings, affidavits and exhibits. He said the material provided no basis for recusal or for refusing the bankruptcy orders. He described the recusal argument as appearing to rely mainly on an objection connected with a prior Court of Appeal ruling involving the President of the High Court, and said an adverse ruling alone was not grounds for recusal.
On the petitions’ merits, the judge said he was satisfied that the statutory criteria were met, including that the debts exceeded €20,000, were liquidated sums, and that the debtors had the required connection to the State. He also considered whether the debtors’ circumstances could be dealt with through a debt settlement arrangement or personal insolvency arrangement. He found no adequate basis for that course and said there was no need to order disclosure of assets and liabilities through statements of affairs.
The orders refused the recusal application and adjudicated each debtor bankrupt. The judgment does not set out further consequences or terms of the adjudications.