Drumm's home-share transfer to his wife is overturned
Published 22/12/2010 | 05:00
THE High Court yesterday formally overturned the transfer by former Anglo Irish Bank CEO David Drumm of his half-share in the former family home into the sole ownership of his wife.
In court proceedings against Mr Drumm and his wife Lorraine, Anglo had sought to overturn the May 2009 transfer of ownership of the property at Abington, Malahide, Co Dublin, arguing it was a fraud on creditors.
The Drumms insisted it was for tax reasons.
However, after several court hearings, Lorraine Drumm last month gave an irrevocable consent to the transfer being quashed and the property reverting into the joint ownership of the couple, meaning applications could be made to have Mr Drumm's share of the property realised for the benefit of his creditors.
The property has been valued at €1.2m.
However, no formal order could be made in the case arising from Mr Drumm having filed for voluntary bankruptcy in the US last October, just days before proceedings were due to be heard against him and his wife in the Commercial Court.
After Ms Justice Elizabeth Dunne granted High Court orders allowing the Irish courts to assist the US Trustee, Ms Kathleen P Dwyer, in administering Mr Drumm's bankruptcy and vesting ownership of the Abington property in the Trustee, the cases against the Drumms came back before the Commercial Court yesterday.
Mr Justice Peter Kelly made an order setting aside "ab inito" (from the beginning or as if it had never happened) the May 2009 transfer of the property from the joint ownership of David and Lorraine Drumm into the sole name of Mrs Drumm.
The judge also continued an order restraining Mrs Drumm from any dealings in relation to Abington pending the lodging of appropriate documents concerning the property with the Property Registration Authority so as to give effect to the orders of Ms Justice Dunne.
Once those documents are lodged, the order should be lifted, he directed.
Those orders bring to an end the court proceedings against Mr and Mrs Drumm over the house transfer, Anglo already having secured the costs of those proceedings against Mrs Drumm by agreement.
Anglo's Commercial Court action against Mr Drumm over €8m unpaid loans, and his counterclaim for €2.6m, remains outstanding.