High Court action over home settled

A mother facing the possible loss of the family home after transferring it to her son “for love and affection” to raise funds for the family building company which later collapsed has settled her High Court action over the transfer.

Rosaleen Rogers had claimed the transfer of the house at Bancroft Crescent, Tallaght, to her son Paul was to have been for one year only but he had failed to return it and she also alleged breach of duty by solicitor Fiona Murray who drew up the transfer documents.

The court heard there was just €2,300 owed on the mortgage when the house, then valued at €350,000, was transferred in 2002 but it could now be exposed to claims of more than €660,000.

The potential claims arise from Paul Rogers's failure to make repayments on a €225,000 Educational Building Society loan secured on the property after transfer.  ACC Bank has also secured judgment for more than €440,000 against Paul Rogers and his father Patrick over the debts of the family building company, Barnroe Ltd.

No terms of settlement of the action were disclosed today and the only order made in the case was for Ms Rogers' costs to be paid by Ms Murray and for a lis pendens (claim or charge) over the property to be vacated.

Paul Rogers, who the court heard is unwell with bi-polar disorder, did not defend the proceedings.

Ms Rogers' claims against the EBS were dismissed last Friday on the grounds that no case had been made out against the society.

The settlement was announced today by Sara Moorehead SC, for Ms Rogers, to Mr Justice Michael Hanna who on Friday had adjourned the action while Ms Murray was being cross-examined after saying the case had reached a certain stage and the sides should carefully consider their positions.

When told of the settlement, the judge remarked the sides had been "magisterially advised" by their lawyers.

During her evidence, Ms Murray, Donore Avenue, South Circular Road, Dublin, had said she was aware there were 13 legal cases outstanding against Barnroe Ltd when she drew up legal documents providing for the transfer the house to raise funds for the company.

Ms Murray denied claims by Ms Rogers she had not advised the couple in May 2002 against the transfer. As she was Paul's solicitor and acting for him in litigation against Barnroe, she said she had advised them to seek independent legal advice but they had insisted the transaction went ahead.

Ms Murray also said it was her idea, rather than that of Ms Rogers, to prepare a document which was "most likely not enforceable" providing for the house to be returned to the couple after a year. She had hoped that document would be evidence of the intentions of the parties.

Ms Murray also said she was aware Paul Rogers had applied to the EBS for a home loan for a private dwelling when in fact he intended to use the Tallaght house to raise finance for Barnroe and agreed she should have told the EBS of that situation.