Bank of Ireland v Gleeson

• Jurisdiction: Ireland
• Judge: Mr Justice Francis D Murphy
• Judgment Date: 06 April 2000
• Neutral Citation: [2000] IESC 5
• Court: Supreme Court
• Date: 06 April 2000

[2000] IESC 5

THE SUPREME COURT

Murphy J

Barron J

Geoghegan J

21/98

BANK OF IRELAND v. GLEESON

IN THE MATTER OF THE FREEHOLD PROPERTY THE SUBJECT OF A

SETTLEMENT MADE THE 4TH DAY OF MARCH, 1954 BY PADRAIG

O'GLASAIN, NOW DECEASED and

IN THE MATTER OF A CONTRACT FOR SALE OF PART OF THE SAID

PROPERTY and

IN THE MATTER OF THE TRUSTEE ACT, 1893 And

IN THE MATTER OF DIRECTIONS SOUGHT BY THE TRUSTEES OF THE SAID

SETTLEMENT IN RELATION TO MATTERS THAT HAVE ARISEN IN THE

ADMINISTRATION OF THE TRUST OF THE SAID SETTLEMENT.

Between:

THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND

Applicant/Respondent

AND

TADGH GLEESON

Respondent/Appellant

Citations:

TRUSTEE ACT 1893

CENTRAL BANK ACT 1971

LANDLORD & TENANT (GROUND RENTS) (NO 2) ACT 1978

LANDLORD & TENANT (AMDT) ACT 1984

METROPOLITAN PROPERTIES LTD V O'BRIEN 1995 1 IR 467, 1995 2 ILRM 383

DANCE V GOLDINGHAM 1873 8 CH APP 902

Synopsis

Practice and Procedure

Practice and procedure; contract; settlor conveyed properties in freehold by indentures to the respondent bank in 1954 upon trust to sell the same provided that during life of settlor's wife such sale should be made only with her consent in writing and that trustee should hold the proceeds of trust for sale upon trust for settlor's wife and his children or remoter issue or some one or more of them upon and subject to the terms of the indentures; at date of conveyance trust property was subject to an indenture of lease from 1898; interest of lessee thereunder was assigned in 1971 to Commissioners of Public Works in Ireland for the residue of the term; on expiration of lease the Commissioners served a notice of intention on the respondent to acquire the fee simple in the premises pursuant to the provisions of the Landlord and Tenant (Ground Rents) (No.2) Act, 1978; by contract of sale the respondent, with consent of settlor's widow, agreed with the Commissioners for the sale to them of the fee simple; price agreed did not represent open market value of the property; appellant objected to respondent's completing the contract of sale; respondent instituted proceedings by way of special summons seeking directions of the High Court as to whether the respondent against the will of the appellant ought to proceed to complete the contract of sale; whether President of the High Court was correct in declining to answer the question posed by the summons.

Held: Appeal dismissed; judgment of President of the High Court affirmed.

Bank of Ireland v. Gleeson - Supreme Court: Murphy J., Barron J., Geoghegan J. - 06/04/2000

The respondent objected to the sale of premises held under a trust. The respondent was a beneficiary under the said trust. The premises had been valued in accordance with the provisions of the

"[http://www.bailii.org/ie/legis/num_act/latr2a1978348/index.html]"

Landlord and Tenant (Ground Rents) (No 2) Act 1978. The respondent claimed that this method of valuation was incorrect and the purported sale would be a breach of the terms of the trust. The applicant bank sought directions from the High Court as to whether they should proceed with the proposed sale. The High Court declined to answer the questions posed and the applicant appealed. The Supreme Court held that the issues involved were matters which fell to be determined by the vendor and purchaser and were not for the court to address. Accordingly the appeal was dismissed.

Mr Justice Francis D Murphy

[NEM DISS]

1 The issues which arise in this case must be considered from two distinct stand points. First as between the parties to these proceedings, namely, the Governor and Company of the Bank of Ireland (the Bank) and Tadgh Gleeson (Mr Gleeson) and secondly, as between the Bank and the Commissioners of Public Works in Ireland (the Commissioners).

2 Consideration of the first perspective commences with two indentures both dated the 4th day of March 1954 and expressed to be made between Padraig O'Glasain of the one part and the National Bank Limited of the other part. By those indentures Padraig O'Glasain conveyed certain properties in freehold to the National Bank Limited upon trust to...