Introduction

The case of Maria Dolores Fernandez Sanchez v Santiago Capital DAC & Ors (Approved) ([2023] IEHC 681) adjudicated by the High Court of Ireland on December 18, 2023, addresses critical issues surrounding the registration and potential vacating of lis pendens. The plaintiff, Maria Dolores Fernandez Sanchez, initiated proceedings against multiple defendants, including Santiago Capital DAC and others, seeking to enforce her interests in a property known as the Old Schoolhouse, Clonsilla. The defendants, led by Santiago Capital DAC, contested the registration of three lis pendens on the grounds of unreasonable delay and lack of bona fide prosecution of the action by the plaintiff. This judgment primarily focuses on the defendants' application to vacate the lis pendens, setting a significant precedent in property and litigation law.

Summary of the Judgment

The High Court, presided over by Mr. Justice Liam Kennedy, examined the plaintiff's actions in registering three lis pendens over the Old Schoolhouse property. The defendants argued that the plaintiff had neither prosecuted the action expeditiously nor acted in good faith. The court meticulously analyzed the chronology of the litigation, the plaintiff's evidence, and the legal frameworks governing lis pendens. Ultimately, the court ruled in favor of the defendants, directing the court to vacate all three lis pendens. This decision was grounded in the plaintiff's unreasonable delay and the conclusion that the proceedings were not being conducted bona fide. The court also highlighted the plaintiff's failure to substantiate her claims adequately and her strategic litigation maneuvers, which undermined the legitimacy of her actions.

Analysis

Precedents Cited

The judgment extensively references several key precedents that shape the court's approach to lis pendens and the standards for vacating them:

• Hurley Property ICAV v. Charleen Limited [2017] IEHC 611: This case established the importance of prosecuting proceedings without unreasonable delay and acting bona fide, especially when a lis pendens is registered.
• Togher Management Company Limited & Anor v. Coolnaleen Developments Limited (in receivership) [2014] IEHC 596: Clarified the obligation to prosecute proceedings with expedition and vigor under section 123 of the Land & Conveyancing Law Reform Act 2009.
• Tola Management LLC v. Joseph Linders & Anor. (No. 2) [2014] IEHC 324: Interpreted "not being prosecuted bona fide" to include both the overall prosecution of the action and specific steps within it.
• Kelly & O'Kelly v. Irish Bank Resolution Corporation Ltd [2012] IEHC 401: Highlighted that registering a lis pendens solely to frustrate the sale of property constitutes an abuse of court process.
• Bennett v. Earlsfort Centre (Developments) Unlimited Company [2018] IEHC 61: Emphasized that actions to legitimize lis pendens through secondary claims do not satisfy bona fide prosecution requirements.

Legal Reasoning

The court's legal reasoning centered on the provisions of the Land & Conveyancing Law Reform Act 2009, particularly section 123, which allows for the vacating of a lis pendens under two primary conditions:

• Unreasonable Delay: The court scrutinized the timeline of the plaintiff's actions, noting significant delays in serving the Plenary Summons and progressing the proceedings. The plaintiff's failure to act promptly, even after notifications from the defendant's solicitors, demonstrated a lack of expedition and vigor required by the Act.
• Not Prosecuted Bona Fide: The court assessed whether the plaintiff pursued the litigation in good faith. The multiplicity of proceedings, coupled with inadequate substantiation of claims and strategic maneuvers to register lis pendens, indicated that the litigation was not being conducted bona fide but rather served as a tactical tool to obstruct the sale of the property.

Furthermore, the court highlighted the plaintiff's failure to establish a substantive interest in the property, the inconsistent and belated affidavits regarding service of proceedings, and the strategic issuance of multiple similar proceedings solely to ground the lis pendens. These factors collectively undermined the legitimacy of the plaintiff's actions, justifying the court's decision to vacate the lis pendens.

Impact

This judgment sets a stringent benchmark for litigants seeking to register lis pendens in Ireland. It underscores the necessity of:

• Expeditious Prosecution: Litigants must diligently progress their cases without undue delays to prevent misuse of the lis pendens mechanism.
• Bona Fide Intent: Actions must be pursued in good faith, with substantive claims supported by adequate evidence and not merely as tactical strategies to hinder property transactions.
• Compliance with Legal Procedures: Proper service of documents and adherence to procedural norms are critical. Failure to comply can result in adverse rulings, including the vacating of lis pendens.

Future cases involving lis pendens will be heavily influenced by this precedent, encouraging parties to engage in responsible litigation practices and discouraging the use of lis pendens as a mere obstructive tool.

Complex Concepts Simplified

Lis Pendens

A lis pendens is a legal notice indicating that litigation is pending concerning a property, thereby warning potential buyers or financiers that the property is subject to a dispute. It serves to inform third parties about existing claims that may affect the property's ownership or value.

Land & Conveyancing Law Reform Act 2009

The Land & Conveyancing Law Reform Act 2009 is a critical piece of legislation in Ireland that reforms various aspects of land law and conveyancing. Section 123 of this Act specifically deals with the registration and potential vacating of lis pendens, providing the framework for addressing cases where such notices may be misused or improperly registered.

Section 123 of the Act

Section 123 outlines the circumstances under which a court may vacate a lis pendens. These include situations where there has been an unreasonable delay in prosecuting the action or the action is not being prosecuted in a bona fide manner. The section aims to prevent the abuse of lis pendens registration, ensuring that such legal instruments are used appropriately to protect genuine interests in property disputes.

Bona Fide Prosecution

Bona fide prosecution refers to pursuing legal action with genuine intent and sincerity. In the context of lis pendens, it means that the litigation should be undertaken earnestly to resolve substantive disputes, rather than as a strategic maneuver to obstruct property transactions or gain undue advantage.

Conclusion

The High Court's decision in Sanchez v Santiago Capital DAC & Ors serves as a landmark ruling in the realm of property litigation and the management of lis pendens in Ireland. By meticulously evaluating the plaintiff's conduct and adherence to legal obligations under section 123 of the Land & Conveyancing Law Reform Act 2009, the court reinforced the principles of timely and bona fide prosecution of legal actions. This judgment not only vacates the improperly registered lis pendens in question but also establishes a clear precedent that litigants must avoid delays and ensure the authenticity of their legal pursuits. Moving forward, the legal community must heed these standards to uphold the integrity of the judicial process and prevent the misuse of mechanisms like lis pendens for obstructive purposes.