Judgment reserved in tribunal's Lawlor challenge

THE SUPREME Court has reserved judgment on a challenge by the Mahon tribunal to a ruling that prevents it pursuing claims against the home and lands of the late Fianna Fáil TD Liam Lawlor in Lucan, Co Dublin. The tribunal was seeking legal costs of more than €430,000 due to it by Mr Lawlor.

In the High Court in July 2008, Ms Justice Mary Laffoy ruled that when Mr Lawlor died in a crash in Moscow in October 2005, his interest in his family home and lands at Somerton, Finnstown, Lucan, ceased and, therefore, various judgment mortgages granted to the tribunal against Mr Lawlor relating to the house and lands also ceased.

With Mr Lawlor’s death, the interest of the tribunal as judgment creditor regarding the house and lands “passed out of existence”, she ruled.

Mr Lawlor had predeceased his wife without their joint tenancy in their home and lands being severed and, on the death of Mr Lawlor, the house and lands accrued to Mrs Lawlor solely by right of survivorship, she found.

The judge was ruling on an application to establish the effect of the death of Mr Lawlor on legal proceedings in which the tribunal sought orders relating to the couple’s properties to satisfy debts of some €430,000 in legal costs.

The tribunal had initiated its proceedings in 2003 seeking “well-charging” orders against Mr Lawlor’s home and lands, then valued at €3m-€4m, to satisfy various costs judgments granted to it prior to Mr Lawlor’s death.

Yesterday, a three-judge Supreme Court, presided over by Mrs Justice Susan Denham, heard the tribunal’s appeal against Ms Justice Laffoy’s decision and reserved judgment.

The tribunal is contending Ms Justice Laffoy erred in failing to find section 71.1 of the Registration of Title Act 1964 had amended section 6 of the Judgment Mortgage (Ireland) Act 1850 in such a way as to apply the provisions of the 1850 Act to registered land and thereby transferring the interest of the landowner to the owner of the judgment mortgage.

In separate High Court proceedings, Mr Lawlor was ordered in November 2003 to pay within three months some €275,000 to a solicitor, Dermot P Coyne, who had represented him.

On February 10th, 2003, Mr Coyne obtained judgment for €275,000 which was then registered against the Lawlor home. In November 2003 Mr Justice Nicholas Kearns declared the judgment mortgage was well charged on Mr Lawlor’s interest and ordered that if the sum was not paid, ancillary orders sought, including the sale of the property, would also be granted.

Mr Coyne had acted for Mr Lawlor throughout 2002/2003 when Mr Lawlor was before the High Court before being found guilty of contempt and jailed on three separate occasions.

In light of the Coyne decision, the tribunal’s proceedings were adjourned generally but were reactivated in mid-2007 because the Coyne proceedings had been settled the previous February on terms involving the discharge of the order granted to Mr Coyne.