Cork auctioneer fails in appeal over €107,000 rates bill

A Cork auctioneer has failed in his legal challenge to a rates bill of over €100,000 in respect a series of properties which he owned but which he was unable to rent due to a collapse in the letting market.

Liam Lynch, whose offices are at South Mall, Cork had lodged an appeal to Cork Circuit Court over a rates bill for €107,119 which Cork City Council had sought from him over his failure to pay rates on the several commercial properties in 2012 and 2013.

Mr Lynch had previously told the court that the portfolio of properties, which included rental properties at George's Quay, Dunbar Street, Fr Matthew Street and South Mall had been built up over a period of 25 to 30 years.

He had told the court the properties were bought to let and had been retained to rent but that there had been a major recession leading to a collapse in the letting market and that he had, as a consequence, derived no income or benefit from them since the collapse.

Judge Donagh McDonagh said that it had been established that there was a cost associated with the ownership of these buildings whether that cost was mortgage related, insurance related or maintenance and upkeep related.

He said the “nub of the issue” was whether these properties were liable through their owners or occupiers for a rate payment to the council and he believed Mr Lynch could legitimately be defined as either an occupier or an owner.

“I have no doubt that Mr Lynch is the owner of the material properties and in the absence of any alternative occupiers other than Mr Lynch, he is the one primarily liable for the payment of the outstanding rates,” said Judge McDonagh.

He noted Mr Lynch in his evidence had effectively pleaded inability to pay by reason of the properties being vacant and not generating any rent but he saw no difference between this and a tenant pleading inability to pay rent or a mortgage holder pleading inability to pay a lender.

In each case, the tenant must pay his rent, the mortgage holder must pay his mortgage, sell or face repossession and it was disingenuous of a property owner to seek to avoid paying his rates due to inability to pay and expect to continue as normal and retain the properties.

“If one cannot meet some liabilities on an asset, it seems to me the only logical thing to do is to dispose of some or all of the assets to meet those liabilities,” said Judge McDonagh, as he rejected Mr Lynch’s appeal and ruled the council was entitled to judgement for the full sum.

Judge McDonagh also made an order for costs against Mr Lynch, rejecting a submission by Mr Lynch's solicitor, Dominic Creedon that a significant legal principle needed to be clarified in the taking of the case.

He said that if Mr Lynch wanted to clarify the legal point it would have been cheaper for him to have consulted with the author of a seminal legal text in the area or with any other senior counsel who could have given him a legal opinion.

Barrister for Cork City Council, Meg Butler BL had applied for legal costs in the action, stating that various witnesses had to be called for the civil case which was before Cork Circuit Court on two occasions and before Cork District Court on ten occasions.