Northern Bank Ltd v Edwards

• Jurisdiction: Ireland
• Judge: McCarthy J.
• Judgment Date: 01 January 1986
• Neutral Citation: 1985 WJSC-SC 1425
• Court: Supreme Court
• Docket Number: [S.C. No. 83 of 1983],(83-1983)
• Date: 01 January 1986

1985 WJSC-SC 1425

The Supreme Court

Finlay C.J.

Griffin J.

McCarthy J.

(83-1983)

NORTHERN BANK v. EDWARDS

Northern Bank Limited

Plaintiffs/Appellants

and

Colin Campbell Edwards

Defendant/Respondent

Citations:

CENTRAL BANK ACT 1971 S43

CRIPPS WARBURG LTD V COLOGNE INVESTMENT CO LTD 1980 IR 321

DAMEN & ORS V O'SHEA UNREP MCMAHON 25.05.77 1981/4/464

LANSDOWNE V LANSDOWNE & ORS 1820 2 BLI 60 HL

PHIPPS V EARL OF ANGLESEA 5 VIN ABR 209 PART 8

Synopsis:

CURRENCY

Debt

Discharge - Irish pounds - Money advanced to defendant by plaintiff bank in Northern Ireland - Principal and interest declared by court to be well charged on defendant's property within the State - Court's order expressing amounts due by use of # symbol - Court's order made before adoption by State of European Monetary System - Defendant discharging major portion of debt by payments in Irish pounds - Balance found by treating court's order as expressed in Irish pounds - (83/85 - Supreme Court - 31/7/85).

Northern Bank v. Edwards

JUDGMENT

Liquidated sum

Currency applicable - Court's order made before adoption by State of European Monetary system - Court's order expressing amount due by use of # symbol - Defendant discharging major portion of debt by payments in Irish pounds - Balance found by treating court's order as expressed in Irish pounds - (83/83 - Supreme Court - 31/7/85).

Northern Bank v. Edwards

1 Judgment delivered the 31st day of July 1985 by McCarthy J. [NEM. DISS.]

2 This appeal raises an issue as set out in the Examiner' memorandum of June 1982, which memorandum conveniently and clearly states the case.

"By order dated 10th July 1978 an equitable mortgage created by the deposit made on the 11th January 1974 by the defendant with the plaintiff of title deeds of lands contained in Folio 8127 Co. Donegal was declared well charged on the defendant' interest in the said lands and the sum of £163,291.74 was found due for principal and interest down to 6th June 1978. The usual direction for sale in default of payment was given.

By order dated the 4th day of May 1981 the said order dated 10th July 1978 was deemed to be duly served on the defendant on the 30th day of August 1978. The amount stated to be due therein was not disputed by the 30th day of September 1978.

the plaintiff issued the usual notice to proceed in the Examiner's Office and a question has arisen as to the amount of the balance now due to the plaintiff.

The defendant's bank account on foot of which the plaintiff' claim arises was held in their Branch at Ship Quay Street, Derry, Northern Ireland. The plaintiff computes in sterling the balance it claims is still outstanding while the defendant maintains that payments made since the mortgage order should be credited against the amount found by that order in Irish currency and not in sterling. The sums so paid amounted to IR£189,900.09 equivalent to £174,921.03 sterling.

According to the bank's calculations it claims the sum of £35,374.39 sterling due on 10th November 1981 after charging further interest and allowing credit in sterling for the sums paid by the defendant. The defendant's solicitors submitted that the defendant was on the 12th November 1981 liable for only IR£1,602.54.

At the date of the mortgage order (10th July 1978) The European Monetary System had not been entered into. The Republic of Ireland (sic) joined it in December 1978 and in March 1979 the parity link between sterling and Irish currency was broken. The plaintiff contends that as the bank account was maintained in Northern Ireland all calculations should be in sterling while the...