A BID by Bank of Scotland Plc to re-possess the €1million home of a Dublin couple has run into serious legal trouble, a court heard today.
The bank’s application for possession has been challenged on the basis the couple’s mortgage may not have been transferred from Bank of Scotland (Ireland) Limited to Bank of Scotland Plc when the latter took over the mountain of loan debt built up by the former during the boom.
The BOSPlc entity is seeking to recover the family home in Portmarnock on foot of a €782,000 mortgage loan granted by BOSI Limited to the Beeds in November 2006.
Barrister Rossa Fanning told the Circuit Civil court today that the same legal issue had been raised by a number of defendants in possession cases both in the High Court and the Circuit Court.
He told Judge Jacqueline Linnane that while the preliminary legal issue on the transfer of the mortgage from one banking entity to the other could be dealt with in either court, the issue was due to come up before Ms Justice Mary Laffoy in the High Court.
Mr Fanning said the issue had been raised in other house possession proceedings currently being case managed by Judge Laffoy in the Chancery List of the High Court.
That matter had been listed for mention in April and was unlikely to come to trial before July next.
Andrew Robinson, counsel for the defendants, told Judge Linnane that Mr Justice Paul Gilligan in the High Court had reserved judgment in a similar matter that could yet end up being taken to Europe.
While he would be happy to have the issues in the case tried in the Circuit Civil Court he felt it was not a suitable matter for an early morning motion list.
Mr Robinson said the defendants would be happy to wait for the matter to be dealt with in the High Court and the defendants, while making a monthly repayment on their mortgage, were in the process of putting together an improved offer of repayments to the bank.
Mr Fanning said the debt was now in excess of €800,000 and proposals being suggested by the defendants would cover only half of the ongoing interest.
Judge Linnane, adjourning the matter to April 10 for mention, said the loan was still mounting up.