Order restrains company from selling house

A soldier and his wife living in substandard Army accommodation in Co Kildare placed a booking deposit on a £69,900 house only…

A soldier and his wife living in substandard Army accommodation in Co Kildare placed a booking deposit on a £69,900 house only to be told months later the price had risen by £20,000, the High Court heard yesterday.

Mr Justice Kelly continued until today an order restraining Greenhills Construction Ltd and Loughlion Developments Ltd from disposing of 47 The Curragh Plains, Melitta Road, Kildare.

He was continuing the order to enable Ms Annette Butler, of O'Higgins Road, The Curragh Camp, to register a claim against the property at 47 The Curragh Plains.

Once the claim was registered, he would make an order remitting the matter to Kildare Circuit Court. There were matters of law and of fact to be determined and, in light of the value of the house, the case could be dealt with in the Circuit Court at a saving of time and costs. He directed that a defence be delivered to the statement of claim within 14 days.

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The judge was ruling on an application by Mr Rory de Bruir, for Ms Butler and her husband, who said his clients had entered into an agreement in September 1997 to pay a fixed sum for a house, £69,900, but when they received the contract for the house in June the price had risen to £89,900.

The Butlers lived in a "substandard" Army house in the Curragh camp and had placed a £1,000 booking deposit on a house at Curragh Plains last September, he said. His clients were told the price was £69,900. He accepted the booking deposit was subject to contract.

Mr de Bruir said his clients received a contract for the purchase of the property in June last and the price had increased to £89,900. He said replying affidavits furnished by the defendants stated there was a special offer of £69,900 and that this was the fixed price. His clients had been introduced to the property by a person acting for a building society who appeared to have some agreement with the builder.

The defendants were not entitled to resile from the price of £69,900. He was seeking a declaration there was a valid and subsisting agreement for the sale of 47 The Curragh Plains, to his client at the fixed price of £69,900, an injunction directing the defendants to execute sale to the plaintiffs for that sum and an order restraining them from disposing of the property pending the determination of the Butlers' claim.

Mr Alexander Owens for the defendants said the Butlers were effectively seeking specific performance of contract and were not entitled to do so. There would be substantial contesting of the issues of fact in the case as to whether there was a contract and whether there was part-performance of that alleged contract. The matter should go to full hearing, and his clients were entitled to be able to put in a defence.

Mr de Bruir said his concern was that property prices were increasing. His clients had paid a booking deposit and had a legitimate expectation they would get the house at a certain price. The judge said he appreciated the Butlers were apprehensive about delays in having the matter dealt with but their interests could be dealt with through having a lis pendens registered and remitting the matter to the Circuit Court.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times