Bank appeals possession ruling

The Supreme Court has agreed to allow a bank bring a further appeal against a judgment ruling the circuit court had no jurisdiction to make possession orders for six domestic properties.

The ruling was made by the Court of Appeal last July.

The judgment means possession proceedings which do not fall within exceptions created by acts of 2009 and 2013 will have to be brought in the High Court rather than the circuit court, creating extra costs for litigants.

In a written determination published this week, the Supreme Court granted an application by Permanent TSB to appeal that ruling to the Supreme Court on the basis the case raised issues of general public importance.

The Appeal Court judgment decided issues raised in proceedings by Permanent TSB against David Langan.

In February 2015, PTSB secured orders from the circuit court for possession of six properties after Mr Langan defaulted on repayments.

Mr Langan appealed to the High Court which referred legal issues to the Court of Appeal.

The core legal issue before the Court of Appeal centred on whether, if a property is not rateable under the Valuation Act 2001, the circuit court has jurisdiction to hear proceedings brought by a mortgage lender for possession orders.

Mr Langan argued the circuit court had no jurisdiction as all six properties in his case were built after 2002 and, under the Valuation Act 2001, were not rateable.

While the Land and Conveyancing Law Reform Act 2009, which came into effect on December 1 2009, conferred a new jurisdiction on the circuit court in mortgage cases which was not dependent on rateable valuation, that jurisdiction applies to mortgages for housing loans created after that date.

The Land and Conveyancing Act 2013, which extended the Circuit Court’s jurisdiction to mortgages for principal private residences created before December 1, 2009, is effective only from July 31, 2013.