The operators of the 16-bedroom Aberdeen Lodge Hotel in Sandymount, Dublin 4, have claimed the purported sale of the property is unconstitutional and in breach of their rights.
The claims are made by Patrick Halpin and his partner Ann Keane, who live with their two children at the property, which they say is their family home.
They claim the sale of the property, which has already been the subject of several court battles, by Everyday Finance DAC to an entity called Stairway Property Company Ltd under the 1881 Conveyancing Act is contrary to various articles of the Constitution and the European Convention on Human Rights (ECHR).
Stairway does not accept the property is a family home.
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The couple and a related corporate entity called Elektron Holdings Ltd have brought proceedings against Stairway, Everyday and the State. They are represented in the action by John Kennedy SC and Peter McKenna BL, instructed by solicitor Eugene Carley.
Mr Kennedy said it is his clients’ case that the property cannot be lawfully sold under a “Victorian piece of legislation”.
In the action, which was mentioned before Mr Justice Mark Sanfey on Thursday, the couple seeks various orders including declaring the purported sale is null, void, unlawful and in breach of the Constitution and the ECHR.
They also seek a declaration that the property at Park Avenue is the family home for the couple and their children.
In separate proceedings, Stairway seeks various orders, including an injunction granting it possession of the lodge it claims it acquired in September.
Represented by Padraic Lyons SC, appearing with Eoin Martin BL, Stairway claims the action against it and the others is an abuse of process and was only initiated after the property was sold.
Its proceedings are against the couple, Elektron, which is in receivership, Madison Manor Limited, which is the corporate entity that operates the hotel, and all persons in occupation of Aberdeen Lodge.
On Thursday, Mr Kennedy told the court that while his side was quite happy to have all matters heard as soon as possible, it was quite “surprised” by Stairway’s decision to seek an injunction against it.
Stairway’s bid for an injunction seeking possession could easily have been made as a counterclaim in the action brought by his client, rather via other proceedings that are “unnecessary”.
Mr Lyons said that while his side has been served with a summons outlining the claims against it, Stairway does not fully know what the action is about and wants the couple and Elektron to set out its allegations in a statement of claim.
Brian Conroy SC for the State said that his clients would also like to be furnished with documents in what is a challenge against legislation of “some antiquity”.
Everyday Finance’s lawyers said it does not understand why it has been sued and wants to be released from the case.
Mr Justice Sanfey agreed to put a timetable in place for the exchange of legal documents in the two cases.
The matter will be next mentioned before the court later this month.
Possession of the lodge has been the subject of lengthy and complex legal proceedings in recent years before the High Court, Court of Appeal and Supreme Court.
Receivers were appointed over the property over an alleged failure to repay a debt of €24 million to the Irish Bank Resolution Corporation.
The couple’s alleged debt was sold first to Kenmare Property Finance, which in turn sold it to Everyday Finance.
