Solicitor must pay €140,000 for mishandling sale of house

The inadequate handling of a house sale by solicitors resulted in a house in Co Wicklow being sold by a father without his daughter…

The inadequate handling of a house sale by solicitors resulted in a house in Co Wicklow being sold by a father without his daughter having any knowledge of that sale, despite a clear intention that the house was to be held in trust for her, a High Court judge has found.

Mr Justice Thomas Smyth said the house was sold with the late Peadar O'Toole falsely asserting the title deeds had been irretrievably lost. In fact, those deeds had been taken by his daughter, Michelle Doyle, because she feared her father would try and sell the house without her knowledge.

In the event, the house was sold and Mr O'Toole spent the proceeds before his death.

In a reserved judgment on proceedings by Ms Doyle (34), a mother of four, Mr Justice Smyth held she was entitled to judgment for €160,000, of which €140,000 was to be paid by Gabriel Haughton, solicitor, and €20,000 from Cliona Weafer, the purchaser of the house.

READ MORE

He held Ms Weafer's liability arose through the omission of her solicitors in not requesting rejoinders regarding answers given by Mr O'Toole on documents relating to the house sale.

Ms Weafer bought the house at Kilmanton Hill, Wicklow, for £75,000 and spent £40,000 on improvements. The house was now valued about €235,000-€245,000 with the improvements having an approximate value of €83,000. He found the net value of the premises to Ms Doyle was €160,000.

Outlining the background, Mr Justice Smyth said that in late 1980, Ms Doyle's aunt by marriage, Mary Margaret O'Toole, clearly intended the house should belong to Ms Doyle when she reached 21 and until then it should be held in trust for her by her father.

This was effected by a deed of conveyance and the separate making by Mr O'Toole of a declaration of trust in favour of Ms Doyle. The documents were executed by Ms O'Toole in England and sent directly to Mr O'Toole.

The judge said he was satisfied that if the proper inquiries had been made by the office of Mr Haughton, the declaration of trust in favour of Ms Doyle would have come to light. He also said Ms Weafer's solicitor "strangely" did not insist on a reply regarding answers given by Mr O'Toole in documents for the house sale.