The Supreme Court has dismissed Brian and Mary Patricia O’Donnell’s appeal against High Court orders adjudicating them bankrupt in main proceedings in Ireland. The Court upheld the finding that each had their centre of main interests in Ireland when the relevant bankruptcy petition was presented.
The Bank of Ireland presented petitions against Mr O’Donnell on 1 June 2012 and Mrs O’Donnell on 7 June 2012. The petitions relied on a High Court judgment requiring each to pay €71,575,991.29, plus interest at 8% a year from 12 December 2011. The High Court made the bankruptcy orders on 2 September 2013 after finding that the centre of main interests of each was in Ireland.
The O’Donnells argued on appeal that the High Court had wrongly assessed the evidence about their move to England and had misapplied the legal test. The Supreme Court said the bank bore the burden of proving that the centre of main interests was in Ireland. It found, however, that the High Court had not shifted that burden to the O’Donnells.
The Court considered evidence that the couple had moved to London in December 2011 and were living and working in England when the petitions were presented. It also considered evidence about their business and economic activity, Irish property interests, directorships in Irish companies recorded in the Companies Registration Office, and a business partnership registered in Dublin. The Court said a creditor seeking to establish their centre of main interests could ascertain relevant Irish business connections from public records.
The Court concluded that the couple had been engaged jointly in an independent property investment business conducted from Ireland and elsewhere, and that this business activity was at the root of their insolvency. Given that context, the principal question was where they had their business centre, rather than where they were habitually resident. The evidence supported the High Court’s conclusion that the central administration of their business interests and economic activity was in Ireland.
The Supreme Court dismissed the appeal. It did not make new bankruptcy adjudication orders; the appeal concerned the existing High Court orders, which were left undisturbed.