High court dismisses motion to dissolve property purchase order

High Court dismisses motion to dissolve property purchase order

The High Court has ruled against a motion filed by the Defendants, Mr. and Mrs. O'Keeffe, seeking to dissolve or vary a previous court order related to a property purchase option exercised by the Plaintiff, Mr. Doe. The case centred on 'the Beach Tavern,' a property located at Bath Street, Irishtown, Dublin.

The proceedings stemmed from a 2015 tenancy agreement granting Mr. Doe an option to purchase the property. This option was exercised in 2016, leading to a declaration in 2022 that the Plaintiff was entitled to purchase the property for €725,000. However, the purchase had not been completed, prompting the Defendants to seek relief from the court.

Justice Nessa Cahill, in her judgment delivered on 20 January 2025, emphasised the finality of the 2022 Order, which declared the valid exercise of the purchase option but did not impose specific performance obligations on the parties. The court found no jurisdiction to dissolve or vary the order, as it was not equivalent to an order for specific performance.

The Defendants argued that the Plaintiff's failure to complete the purchase caused significant financial hardship, as they were unable to sell the property or reduce their debts. Despite these concerns, the court maintained that the 2022 Order did not address future actions or impose ongoing obligations.

Justice Cahill noted that the Plaintiff had not demonstrated any intention to complete the purchase at the agreed price, and the proposals put forward were inconsistent with the terms of the exercised option. The court found the Plaintiff's actions indicative of a lack of intent to fulfil the purchase agreement.

The judgment highlighted the importance of the rule against perpetuities, suggesting that an indefinite option to purchase could not have been the intention of the original order. The court acknowledged the Defendants' financial difficulties but reiterated that the 2022 Order did not constrain them indefinitely.

The court concluded that while the Defendants' concerns were understandable, they did not alter the nature of the 2022 Order. The court invited the parties to submit written submissions on costs by 4 February 2025, with a potential hearing on 17 February 2025.

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For more information on housing law, see BeCivil's guide to UK Housing Law.