Bankruptcy appeal rejected

Solicitor Brian O’Donnell and his wife Dr Mary Patricia have lost a Supreme Court appeal over their bankruptcy.

A five-judge court yesterday unanimously dismissed the O’Donnells’ claim the High Court was wrong in finding their centre of main business interest was Ireland rather than England at the time of their bankruptcy.

The O’Donnells were adjudicated bankrupt by the High Court in August 2013.

Bank of Ireland had applied to have them declared bankrupt after they failed to satisfy a judgment for €71.57m obtained against them in December 2011 arising out of failure to repay property-related loans.

The couple claimed they operated their extensive property business in England having moved permanently to London in December 2011. In January 2013, they said they took out a two-year lease on another property in Kent where they live and work.

Among their other arguments were that they paid their taxes in England, did not have operational bank accounts in Ireland, were on the electoral register in England rather than Ireland, and had reserved graves in London.

The High Court in London separately ruled their centre of main interest was Ireland not England after they had sought to avail of the then more lenient bankruptcy regime there.

In their Supreme Court appeal, they argued the High Court misapplied a rule that the burden of proof to establish centre of main interest lay on the bank. They also claimed the High Court judge, Mr Justice Peter Charleton, misapplied the legal principles for determining the centre of main interest.

The bank denied the claims and opposed the appeal.