Court rules against Mahon tribunal on Lawlor costs

THE MAHON tribunal cannot pursue claims against the late Liam Lawlor's home and lands in Lucan, Co Dublin, in order to meet legal…

THE MAHON tribunal cannot pursue claims against the late Liam Lawlor's home and lands in Lucan, Co Dublin, in order to meet legal costs of more than €430,000 due to it by the late TD, the High Court has ruled.

Ms Justice Mary Laffoy said that when Mr Lawlor died in a crash in Moscow in October 2005, his interest in his family home and lands at Somerton, Finstown, Lucan, ceased and therefore various judgment mortgages granted to the tribunal against Mr Lawlor relating to the house and lands also ceased.

With Mr Lawlor's death, the interest of the tribunal as judgment creditor regarding the house and lands "passed out of existence", she ruled.

Mr Lawlor had predeceased his wife without their joint tenancy in their home and lands being severed and, on the death of Mr Lawlor, the house and lands accrued to Mrs Lawlor solely by right of survivorship.

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Ms Justice Laffoy was ruling on an application to establish the effect of the death of Mr Lawlor on legal proceedings in which the tribunal had sought orders relating to the couple's home and lands to satisfy debts of some €430,000 in legal costs.

The tribunal had initiated its proceedings in 2003 seeking "well-charging" orders against Mr Lawlor's home and lands, then valued between €3 and €4 million, to satisfy various costs judgments granted to it in 2002 and 2003 prior to Mr Lawlor's death.

In separate High Court proceedings, Mr Lawlor was ordered in November 2003 to pay within three months some €275,000 to a solicitor, Dermot P Coyne, who had represented the former deputy in legal proceedings.

On February 10th, 2003, Mr Coyne had obtained judgment for €275,000 which was then registered against the Lawlor home at Somerton. In November 2003, Mr Justice Nicholas Kearns declared the judgment mortgage was well charged on Mr Lawlor's interest.

He further ordered that if the sum was not paid, ancillary orders sought, which included the sale of the property to satisfy the debt, would also be granted.

Mr Coyne had acted for Mr Lawlor throughout 2002-2003 when Mr Lawlor was before the High Court on a number of occasions before eventually being found guilty of contempt and committed to Mountjoy Prison three times.

In light of the Coyne decision, the tribunal's proceedings were adjourned generally but were reactivated in mid-2007 because the Coyne proceedings had been settled the previous February on terms involving the discharge of the well-charging order granted to Mr Coyne.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times