Gladney v H [2019] IEHC 713 (30 October 2019)
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Page 1 ⇓
THE HIGH COURT
[2019] IEHC 713
2014 No. 337 R
BETWEEN:
MICHAEL GLADNEY
PLAINTIFF
– AND –
H
DEFENDANT
JUDGMENT of Mr Justice Max Barrett delivered on 30th October, 2019.
1. By Circuit Court Order of Stewart J. of 26.06.2012 following on family law proceedings
brought pursuant to the Family Law (Divorce) Act 1996, the learned judge made an
order, inter alia, re-affirming certain settlement terms between Mr H and Ms H.
2. In a further Circuit Court Order of 26.01.2015, made pursuant to a notice of re-entry,
Sheahan J. notes that in respect of arrears owing on the maintenance order, Mr H “will
authorise his solicitor…to ensure that any or all [monies] that he receives in his
defamation proceedings against [a named newspaper] will be held by…[that] solicitor and
not dissipated until this matter [presumably the non-observance of the order of Stewart
J.] is resolved”. The solicitor was so authorised and gave a related undertaking.
3. The defamation proceedings were settled between the parties, pursuant to which Mr H
became entitled to payment of a sum of money. The debt arising under the order of
Stewart J. remains unpaid.
4. Separately, Mr H is a judgment debtor of the Revenue Commissioners for substantial
amounts of money owing pursuant to judgments of 17.02.2017, 7.09.2017 and
27. 11.2018 (the ‘Three Judgments’). The Revenue Commissioners followed the course of
the defamation proceedings in the newspapers and kept a watching brief in court on the
anticipated hearing dates. Following on the settlement of the defamation proceedings, the
Revenue Commissioners have come seeking a garnishee order which would enable the
payment of the settlement monies to them. Those proceedings were commenced by
notice of motion of 23.05.2019.
5. As the court noted in its judgment in AIB plc v. McGuigan [2018] IEHC 67, to which it was
referred in argument, at para.9:
“Among the matters to which a judgment creditor must aver in the affidavit
evidence supporting its ex parte application [i.e. without the judgment debtor
present] are that the debt to be attached does not belong to a third person and
that no third person has an interest in it….The granting of a garnishee order is a
discretionary matter. So even where the various necessary averments are made,
the judge before whom application is made nonetheless has the power to refuse the
relief. Examples of circumstances in which a garnishee order might be refused
include but are not limited to where attachment would not leave a judgment debtor
enough to support herself and any dependents”.
Page 2 ⇓
6. These proceedings have been brought on notice to the defendant; however, it seems to
the court that the absence of interest, the discretionary nature of the relief, and the
pointer as to the types of application in which a garnishee order might be refused all
afford useful guidance to the court as to how it should treat with the within application.
7. It seems to the court that there are a number of reasons why the garnishee order now
sought of it should be refused:
(i) it is clear from the order of the Circuit Court (Sheahan J.) that the proceedings
before it are not concluded; Sheahan J. requires that any monies received in the
defamation proceedings “not [be] dissipated until this matter is resolved”; the
matter has not yet been resolved and the court does not see how it could properly
intrude into unfinished Circuit Court proceedings in the circumstances presenting;
and/or
(ii) although one cannot say that Ms H has an interest in the settlement monies, it does
not seem correct to say that the debt is unclouded by any interest; absent the
garnishee order the monies must be paid to Mr H’s solicitor who is to hold them in
his client account pending whatever direction the Circuit Court may give; and/or
(iii) given the ongoing Circuit Court proceedings, given that those are family law
proceedings, and given that the apparent intention of the Circuit Court is to apply
the monies in settlement of the debt outstanding under the judgment of Stewart J.,
it seems to the court that this would be and is an appropriate case in which,
consistent with its observations in McGuigan, albeit that the circumstances of this
case are not quite the same as those presenting there, it ought to and will exercise
its discretion to refuse the relief sought at this time by the Revenue
Commissioners. The court is buttressed in this last conclusion by the properly
forthright averment of the solicitor who has sworn the grounding affidavit for the
Revenue Commissioners that:
“I…have been advised by the Revenue Commissioners that the Defendant [Mr H] is
possessed of certain assets within the jurisdiction which could be subject to a more
ordinary process of execution. I say and believe that it would be (and indeed has
been) possible to convert those Judgments into Judgment Mortgages and,
thereafter, their registration as against certain lands and premises owned by the
Defendant….In that regard, I do say and believe that the Plaintiff [the Revenue
Commissioners] does hold security for the [Three Judgments].”
8. For the reasons aforesaid, all the reliefs sought are respectfully refused.
Result: Reliefs refused
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