Ivan Yates seeks to stop sale of lands by bankruptcy trustees

A legal challenge by the broadcaster and former Fine Gael minister Ivan Yates and his wife over the sale by his bankruptcy trustees of lands in Co Wexford to AIB is to be fast-tracked in the Commercial Court.

The couple claim the sale of certain lands at Blackstoops, Enniscorthy, is void because the lands include their family home.

In proceedings against AIB, and Mark Wilson and George Maloney, appointed by a Welsh court in 2012 as joint trustees in bankruptcy over Mr Yates’ estate, the couple want the property returned.

They claim the lands fall outside Mr Yates’ bankruptcy under a provision of the 1986 Bankruptcy Act in England and Wales which, it is claimed, governs aspects of Mr Yates’ bankruptcy.

Alternatively, they claim Deirdre Yates has a beneficial interest in the lands owing to contributions made by her. The trustees, it is claimed, were obliged to bring proceedings in Ireland to determine her interest and to obtain permission from the Irish courts before disposing of the property.

The alleged failure to issue secondary proceedings concerning Ms Yates interest breaches EU insolvency regulations, it is claimed.

Void

In their action, the couple want various declarations and orders, including that the sale of the lands is void due to the failure to comply with EU insolvency regulations.

AIB denies the claims and contend the couple’s case adversely affects its ability to recover the debts due to it from them.

The bank acquired the relevant lands from the trustees in 2015. AIB had in 2010 loaned €6million to Celtic Bookmakers, which it says was owned and controlled by the couple. AIB appointed a receiver over the company in 2011, which went into liquidation in 2012.

Mr Yates was adjudicated a bankrupt on his own application by Swansea County in August 2012 and the trustees were appointed to his estate in 2013. AIB also in 2016 secured a judgement of €1.6 million against Mrs Yates.

On Monday, Mr Justice Brian McGovern, granted AIB’s application to fast-track the case.

AIB, represented by Aidan Redmond SC, said it wants the dispute resolved quickly and that the value of the property exceeds €1 million. Neil Steen SC, for the trustees, supported the application for admission.

Jerry Healy SC, for the Yates’, opposed the case being admitted to the Commercial Court list, arguing the value of the property does not exceed €1 million and therefore the threshold for admission to the list had not been reached.

Counsel said that, “significantly”, no valuation evidence concerning the property had been put before the court, and the application to admit the case “cannot proceed”.

His clients do not have the resources to deal with a Commercial Court case, which attracts a higher level of legal fees than in the High Court, he added.

Mr Justice McGovern said he was satisfied the threshold had been reached and he would admit the case to the list.

He also suggested the parties consider mediation as a way of resolving the dispute and adjourned the case for a month to facilitate consideration of that option.