Re Petition for Abjudication of Bankruptcy by Ulster Bank Ireland Ltd

• Jurisdiction: Ireland
• Judge: Mr. Justice Brian J, McGovern
• Judgment Date: 13 August 2014
• Neutral Citation: [2014] IEHC 433
• Docket Number: [No. 2478/2013]
• Court: High Court
• Date: 13 August 2014

[2014] IEHC 433

THE HIGH COURT

[No. 2478/2013]

Ulster Bank Irl Ltd v Dunne

BANKRUPTCY

IN THE MATTER OF A PETITION FOR ABJUDICATION OF BANKRUPTCY BY ULSTER BANK IRELAND LIMITED AGAINST SEAN DUNNE

BANKRUPTCY ACT 1988 S27

BANKRUPTCY ACT 1988 S28

BANKRUPTCY ACT 1988 S19

KONIGSBERG (A BANKRUPT), IN RE 1989 3 AER 289 1989 1 WLR 1257 1990 FAM LAW 94 1989 NLJR 1302

BANKRUPTCY ACT 1988 S3

BANKRUPTCY ACT 1988 S61(2)

Bankruptcy – Disclosure – Assets investigation – Search and Seizure of Property – Official Assignee – Family Law documentation – Privacy Rights – Personal Papers – Proportionality – Bankruptcy Act 1988

The facts surrounding this case involved the bankruptcy proceedings of one Sean Dunne and the disclosure of documentation relating to his family law proceedings located at his K Club Property. The Official Assignee in the matter filed approved motions to search and seize the documentation at the K club Property under s. 28 of the Bankruptcy Act 1988 and to be made a party to the concurrent Family Law proceedings all in the name of ascertaining the full extent of the bankrupt”s financial position and the existence, if any, of assets. The bankrupt Mr. Dunne contested the extent of the disclosure of documentation in the Family Law proceedings that should be made to the Official Assignee and maintained that the disclosure that had previously been made to the National Asset Management Agency is the extent of the disclosure that should be made. Most recently the issue came before McGovern J. in the High Court, who had the task of determining whether the Official Assignee is entitled to examine documents relating to the Family Law proceedings found at the K Club property, and also the documents filed in the Family Law case to which the Official Assignee has been joined as a party.

McGovern J considered the arguments presented by the opposing parties. While the bankrupt argued that property as defined in s. 3 of the Bankruptcy Act is limited to items of a monetary value as opposed to personal papers, McGovern J found that such an argument flew in the face of the plain language of the Act, and didn”t accept that argument. Furthermore the bankrupt claimed that his rights to privacy would be breached if the Official Assignee were allowed to inspect the Family Law documents found at the K Club property or produced in the Family Law court proceedings. McGovern J additionally rejected this assertion stating that the actions taken by the Official assignee are neither arbitrary nor disproportionate and are necessary to enable him to carry out his function to investigate financial affairs expressed with in the confines of the Bankruptcy Act. McGovern J concluded that so far as any documents found at the K Club property are concerned, it would fair and lawful if the Official Assignee wished to examine the documentation and establish whether it is relevant to the estate of the bankrupt and added that the Official Assignee is the appropriate person to examine the documentation and determine what is relevant or irrelevant in ascertaining the assets of the bankrupt.

Mr. Justice Brian J, McGovern

1 This judgment arises out of a number of legal issues raised before the court in these bankruptcy proceedings. By notice of motion dated 3^rd December 2013, the bankrupt sought a number of reliefs, including the return of documentation connected with Family Law proceedings which were seized from a property known as 19, Churchfield, Straffan, County Kildare (hereinafter referred to as the "K Club property"). That notice of motion sought other reliefs which have been dealt with on an earlier date.

2 On 29^th July 2013, the Official Assignee obtained a warrant of seizure (the "warrant of seizure") pursuant to s. 27 of the Bankruptcy Act 1988 ("the Act"). On 26^th November 2013, by order of Cooke J., the Official Assignee was granted a search warrant pursuant to s. 28 of the Act. At issue in this application is the right of the Official Assignee to inspect the Family Law documentation found by him at the K Club property. He wishes to do so in order to ascertain the full extent of the bankrupt's financial position and the existence, if any, of assets which could have been concealed from the bankruptcy process.

3 By notice of motion dated 27^th January 2014, the Official Assignee sought an order that he be made a party to the Family Law proceedings and that order was made on 7^th March 2014. Thereafter, an...