Bank's case against former rugby star adjourned over legal loophole
MOVES to plug a legal loophole which halted home repossessions may impact on a High Court action over properties owned by former Ireland and Munster rugby player Frankie Sheahan, a judge has been told.
As a result, the action against Mr Sheahan was adjourned to allow the Government to publish new legislation.
Ms Justice Mary Laffoy was due to hear an action by a Bank of Ireland-appointed receiver over a number of properties owned by Mr Sheahan restraining him from interfering with the receiver collecting rents from tenants.
Mr Sheahan (pictured) and his brother Joey got loans, guaranteed by their father Frank senior, from the bank for properties in Cork and Greystones, Co Wicklow. As a result of alleged default in repayments, the bank is separately seeking a judgment of €2.9m against the father.
Bank of Ireland Mortgage Bank is also challenging the interpretation of a 2009 law.
Two years ago, repossessions ground to a halt after Ms Justice Elizabeth Dunne identified a loophole in the 2009 Land and Conveyancing Reform Act.
BoI claims if Ms Justice Dunne's interpretation is upheld, the property rights of secured lenders are being interfered with in a manner that is unconstitutional.
Yesterday counsel for the AG could not say how specific the new legislation would be.
The judge adjourned the matter for mention in a month.