A LEGAL action by a homeowner over Start Mortgages’ entitlement to issue housing loans has been struck out at the Commercial Court on grounds it would “serve no useful purpose”.
Even if Robert Gunn won his judicial review, it would have no practical benefit for him or prevent Start’s repossession proceedings against him, Mr Justice Peter Kelly ruled.
He was granting the Central Bank’s application to strike out the judicial review brought by Mr Gunn against the Central Bank and State, with Start as a notice party, listed for hearing on March 29th next.
The Central Bank previously said the case had major implications for Start’s €1 billion housing loans in Ireland and for the legal position of other lenders.
On the application of Jim Breslin, for the Central Bank, Mr Justice Kelly also awarded costs to the bank against Mr Gunn.
The judge said he was awarding costs on the ground that he previously invited Mr Gunn’s lawyers to halt the judicial review, with no costs against them, when he lifted a stay last month on Start’s repossession proceedings after effectively accepting arguments Start was entitled to issue housing loans.
Mr Gunn, represented by the New Beginnings group of lawyers and business people, had brought his judicial review to prevent Start repossessing his home at Lyre, Lisselton, Co Kerry. He had obtained a mortgage of €210,000 from Start in 2007, secured against his family home, but after losing his job in 2008, he fell into arrears on mortgage repayments.
Start later brought proceedings seeking possession of Mr Gunn’s home with a view to selling it on.
Mr Justice Michael Peart last November granted leave to Mr Gunn to seek judicial review of Start’s entitlement to bring repossession proceedings and granted a stay on the repossession proceedings until further order.
In seeking repossession, Start described itself as a “credit institution” but Mr Gunn in his judicial review argued Start was not properly designated as a credit institution. Start denied that claim but later argued, even if Mr Gunn was right, Start was still a mortgage lender entitled to issue home loans. Because Start was a mortgage lender making a housing loan, it was not relevant whether it was an authorised credit institution, Mr Justice Kelly ruled.
