Carthy v O'Neill

• Jurisdiction: Ireland
• Judge: Henchy J.
• Judgment Date: 30 January 1981
• Neutral Citation: 1981 WJSC-SC 94
• Court: Supreme Court
• Docket Number: No. 1373P/1978
• Date: 30 January 1981

CARTHY v. O'NEILL

GERALD A. CARTHY

v.

MICHAEL O'NEILL AND EILEEN O'NEILL

Reversing High - 1.10.79

1981 WJSC-SC 94

No. 1373P/1978

No. 186/1979

THE SUPREME COURT

1 Judgment of Henchy J. delivered the 30 January 1981[Nem Diss]

2 The Silver Tassie is a well-known hostelry. It is situated at Loughlinstown, on the main road between Dublin and Bray. It has a full publican's licence, together with restaurant facilities. In 1977 it was being run by Michael O'Neill, the first-named defendant. One of the customers of the house was Corry Buckley, a partner in Murphy Buckley and Keogh, the Dublin firm of auctioneers and estate agents. Mr. Buckley had for some time been suggesting to Mr. O'Neill that if he wished to sell the premises, he (Mr. Buckley) in his capacity as an estate agent would get a purchaser for him. Eventually, on Friday the 13 January 1978, Mr. Buckley telephoned Mr. O'Neill to say that he had a purchaser who was willing to pay £190,000 for the premises. Mr. O'Neil response was that he would consult with his solicitor, Mr. Black.

3 On the following day, Saturday the 14th, Mr. O'Neill telephoned Mr. Black. Mr. Black advised him to hold his hand until he (Mr. Black) had an opportunity of discussing the matter with Mr. Buckley. Mr. Black in the course of that day had three telephone conversations with Mr. Buckley, during which Mr. Buckley told him that the purchaser was Gerald A. Carthy, the plaintiff in the present proceedings, that £190,000 was the maximum he was prepared to pay, and that "everything was subject to contract". After further telephone consultation between Mr. O'Neill and Mr. Black, Mr. O'Neill agreed on the Saturday afternoon to the sale to the plaintiff of The Silver Tassie for £190,000, saying that "it was subject to the usual documentation attached to the sale of the property".

4 Meanwhile, Mr. Buckley who was due to go to America that weekend, had dictated three letters on a tape recorder on Friday the 13th, intending that they would be typed and posted by his secretary while he was in America. All three were posted on the 17 January. The first was to the plaintiff confirming that his offer of £190,000 was being accepted and saying that the next step would be for Mr. Black to forward a contract to the plaintiff's solicitor "for his perusal and approval". The second letter was to Mr. O'Neill, marked "Subject to Contract", confirming that he had been authorised to accept the plaintiff's offer of £190,000 and suggesting that Mr. Black should forward a draft contract to the plaintiff's solicitor. The third letter was to Mr. Black and it merely enclosed a copy of Mr. Buckley's letter to Mr. O'Neill.

5 These letters presumably did not reach Mr. O'Neill, Mr. Black or the defendant before the 18 January. In the interval, on the 17 January, Mr. O'Neill executed a formal contract, prepared by Mr. Black, whereby The Silver Tassie was to be sold to another purchaser for£200,000. Mr. Black had advised that as there was no note or memorandum of the contract with the plaintiff, Mr. O'Neill could not be compelled to sell the premises to him for £190,000. However, when Mr. Buckley's three letters, posted on the 17th January, came...