Martin v O'Keeffe & Anor (Approved) -[2025] IEHC 272- (14 May 2025)

BAILII

Automated Summary

Key Facts

The Plaintiff sought specific performance of a contract to purchase the Beach Tavern at 7/9 Bath Street, Dublin for €625,000, later adjusted to €725,000 by the Option Judgment (2021). A lis pendens was registered in 2018 to prevent the Defendants from selling the property. Despite the 2022 Order confirming the €725,000 purchase price, the Plaintiff failed to complete the sale, making deductions for legal costs. The Defendants applied to vacate the lis pendens in 2025, arguing the proceedings were determined and the Plaintiff delayed exercising the option. The court granted the motion, citing the lis pendens remained for over 3.5 years post-proceedings and the Plaintiff never attempted to pay the undeducted €725,000 as required.

Transaction Type

Contract for the purchase of the Beach Tavern property at 7/9 Bath Street, Dublin.

Issues

  • The secondary issue involved the Defendants' argument that the Plaintiff unreasonably delayed exercising the option to purchase the Property after the 2022 Order. However, the court concluded this provision (123(a)(ii)) does not apply post-proceedings and that the correct jurisdiction lies under 123(a)(i). The court found no evidence of delay in the prosecution of the original action, as the lis pendens was not tied to ongoing proceedings.
  • The primary issue was whether the lis pendens, registered in 2018, should be vacated under section 123(a)(i) of the Land and Conveyancing Law Reform Act 2009, as the proceedings seeking specific performance of the option to purchase were conclusively determined in March 2021. The court found the lis pendens remained in place for over 3.5 years post-determination, justifying its removal under this provision.

Holdings

  • The court granted the Defendants' order to vacate the lis pendens under section 123(a)(i) of the Land and Conveyancing Law Reform Act 2009, as the proceedings had been conclusively determined by the 2022 Order recognizing an option to purchase the Property for €725,000. The lis pendens remained in place for over 6.5 years, 3.5 years beyond the proceedings' determination, and its continued existence was deemed unjust and legally vulnerable.
  • The court found that the Plaintiff failed to exercise the option to purchase the Property for €725,000 within a reasonable time after the 2022 Order. No evidence was presented that the Plaintiff attempted to complete the purchase as ordered, and his offers with deductions were not valid exercises of the option.
  • The court rejected the Defendants' secondary argument under section 123(a)(ii) regarding unreasonable delay in prosecuting the action after proceedings were determined. It concluded that post-determination inaction in enforcing rights does not constitute delay in prosecuting the action under this provision.

Remedies

The court granted the Defendants' motion to vacate the lis pendens registered on the Beach Tavern property at 7/9 Bath Street, Dublin, as the proceedings had been determined and the Plaintiff failed to exercise the purchase option within a reasonable time following the 2022 Order.

Contract Value

725000.00

Legal Principles

  • The court applied the principle of res judicata to determine that the plaintiff could not re-litigate findings from the 2022 Order, as no appeal was filed and the previous judgment was final.
  • The court relied on section 123(a)(i) of the Land and Conveyancing Law Reform Act 2009 to vacate the lis pendens, as the proceedings had been conclusively determined over three years prior to the motion.

Precedent Name

  • Hurley Property ICAV v. Charleen Ltd.
  • Carthy v. Harrington

Key Disputed Contract Clauses

The court analyzed the clause regarding the option to purchase the Property for €725,000, determining that the Plaintiff's offers with deductions for legal costs did not validly exercise the option. The clause was interpreted to require full payment of the confirmed price without unilateral reductions, and the failure to comply was a key factor in vacating the lis pendens.

Cited Statute

Land and Conveyancing Law Reform Act 2009

Judge Name

Nessa Cahill

Passage Text

  • section 123(a)(i) is applicable and confers a power to vacate the lis pendens. On the basis of the facts and circumstances outlined above, I am satisfied that this is a case in which it is appropriate to exercise that power.
  • I consider that the Plaintiff's position has been protected for considerably longer than is envisaged by section 123 (the lis pendens having remained in situ for almost 3.5 years beyond the determination of the Proceedings).
  • the only price for which the Plaintiff had an option to purchase the Property was the price of €725,000 without deductions and that the offers made were not in exercise of that option.

Damages / Relief Type

Vacating lis pendens registered on the Beach Tavern property at 7/9 Bath Street, Dublin, as the proceedings had been determined and the Plaintiff failed to exercise the purchase option within a reasonable time following the 2022 Order.