A Dublin businessman has secured a High Court declaration that the chef Mr Conrad Gallagher had registered a £150,000 charge on his home in favour of a woman so as to defeat a court judgment obtained by the businessman.
Mr Gallagher was not in court when Mr Justice Vivian Lavan made the declaration. The court was told that papers had been served on Mr Gallagher and he was aware of the hearing.
The proceedings were brought by Mr Gerard McGurn, Grand Canal Plaza, Grand Canal Street, Dublin against Mr Gallagher, of The Lodge, Killiney Hill Road, Killiney.
The court declaration stated that the registration on October 31st, 2000 of a charge for £150,000 in favour of Ms Karla Elliott, Dalkey, Co Dublin, over Mr Gallagher's residence, was effected to defeat a court judgment for £64,600 obtained by Mr McGurn against Mr Gallagher a week previously.
Mr McGurn said he took legal action against Mr Gallagher in May 2000 arising out of Mr Gallagher's alleged failure to pay rent to him for premises he had leased to Mr Gallagher.
Mr McGurn alleged that on October 9th last year, Mr Gallagher agreed to pay Mr McGurn £10,000 in cash by October 13th and to execute and register a mortgage on his Killiney home so to secure the payment to Mr McGurn of £60,000 in monthly payments. Mr Gallagher, it is claimed, also consented to judgment in the sum of £60,000.
Mr McGurn said that an express term of the agreement was that if there was a default in payments, Mr Gallagher consented to judgment in "a larger sum", together with interests and costs of the legal proceedings. Mr Gallagher, he alleged, had defaulted, had only paid £5,900 and had also failed to execute the charge in Mr McGurn's favour over the Killiney premises.
After Mr Gallagher had defaulted, Mr McGurn claimed he got judgment for £64,600 against the Killiney premises on October 23rd last year.
Mr McGurn said that before he was able to register a judgment mortgage against Mr Gallagher's premises, Mr Gallagher and Ms Elliott had registered by consent a charge of £150,000 in favour of Ms Elliott over the Killiney premises.
Mr McGurn claims the charge was executed at a time when both Mr Gallagher and Ms Elliott knew Mr Gallagher was indebted to Mr McGurn.
Mr McGurn alleged the purpose of the charge in favour of Ms Elliott was to defeat his judgment against Mr Gallagher, or alternatively was effected to delay, hinder or defraud Mr McGurn.
Mr Justice Lavan was told by counsel for Mr McGurn that all the papers had been served on Mr Gallagher. The judge said he would grant the declarations sought.