The Gazette 1986

GAZETTE

APRIL 1986

Practice Notes

Mortgagees' Solicitors &

Their Borrowers —

Conflict of Interest —

Follow-Up

A practice note published in a recent issue of the

Gazette

pointed to the dangers attaching to any

transaction, wherein solicitors for a lending bank would

also be involved in representing or advising a borrowing

customer in the same matter. Such note high-lighted the

wisdom of ensuring that the parties should receive

adequate independent advices, and referred specifically

to an English decision vis.

National Westminster Bank

Limited

-v-

Morgan.

While the House of Lords has since reversed the

decision of the Court of Appeal in the

Morgan

Case,

which was based on an earlier Court of Appeal decision

in the case of

Lloyds Bank Limited

-v-

Bundy,

it should

not be assumed that Irish Courts would automatically

follow the English line of authority. The High Court of

Ontario, and, perhaps, more significantly, the High

Court of Australia, Australia's highest court, have both

followed the

Bundy

decision, and their authority might

at least be persuasive to our Supreme Court.

In the recent case of

Kings North Trust Ltd.

-v-

Bell

and others

[1986] 1 WLR 119, the Court of Appeal in

England was faced with a situation where a lending

institution, through its own solicitors and the

borrower's solicitors, had entrusted to the borrower the

execution of a consent to a mortgage by the borrower's

spouse. It held that, in the circumstances, the borrower

had acted as agent of the lending institution, which was,

accordingly, bound by his actions, and therefore could

not enforce the Mortgage Deed against the spouse, who

had been induced to sign by the fraudulent representa-

tion of the borrower. This line of authority clearly

suggests that, if either the lending institution's solicitor

or the borrower's solicitor had procured the consent of

the spouse, without explaining to her the precise reason

why the security was being sought, the institution would

not be able to enforce the security. This decision

confirms the Conveyancing Committee in its earlier

recommendation, which was that solicitors acting for

banks should not merely advise the customer that it

would be unwise for the solicitor to act for or advise the

customer in the matter but should also advise the bank

of the wisdom of ensuring that the customer and the

bank receive adequate independent advice.

•

Land Act 1965

County Boroughs, Boroughs,

Urban Districts, Towns

and Non-Municipal Towns

For the purposes of Certificates under Section 45 of

the Land Act 1965, the following is a correct listing of

County Boroughs, Boroughs, Urban districts and

Towns, and Non-Municipal Towns as at November

1985. This listing supersedes the list published in the

Gazette

of November, 1985.

County Boroughs:

Cork, Dublin, Galway, Limerick, Waterford.

Boroughs:

Clonmel, Drogheda, Kilkenny, Sligo, Wexford,

Dun Laoghaire.

Urban Districts:

Arklow, Athlone, Athy, Ballina, Ballinasloe, Birr,

Bray, Buncrana, Bundoran, Carlow, Carrickma-

cross, Carrick-on-Suir, Cashel, Castlebar, Castle-

blaney, Cavan, Ceanannus Mor, Clonakilty, Clones,

Cobh, Dundalk, Dungarvan, Ennis, Enniscorthy,

Fermoy, Killarney, Kilrush, Kinsale, Letterkenny,

Listowel, Longford, Macroom, Mallow, Midleton,

Monaghan, Naas, Navan, Nenagh, New Ross,

Skibbereen, Templemore, Thurles, Tipperary, Tralee,

Trim, Tullamore, Westport, Wicklow, Youghal.

Towns:

Ardee,

Balbriggan,

Ballybay,

Ballyshannon,

Bandon, Bantry, Belturbet, Boyle, Callan, Cootehill,

Droichead Nua, (Co. Kildare), Edenderry, Fethard,

(Co. Tipperary), Gorey, Granard, Kilkee, Lismore,

Loughrea, Mountmellick, Muinebeag, Mullingar,

Newcastlewest, Passage West, Portlaoise, Rathkeale,

Roscommon, Tramore, Tuam.

Non-Municipal

towns:

Abbeyfeale, Abbeyleix, Athenry, Bailieborough,

Ballaghaderreen, Ballinrobe, Ballybofey, Bally-

bunion, Ballyhaunis, Banagher, Blanchardstown,

Blarney, Cahir, Caherciveen, Carndonagh-, Carrick-

on-Shannon, Castlecomer-Donaguile, Castleisland,

Castlereagh, Celbridge, Clara, Claremorris, Clifden,

Clondalkin, Dingle, Donegal, Dunmanway, Ennis-

timon,

Gort,

Graiguenamanagh-Tinnahinch,

Greystones-Delgany, Kanturk, Kenmare, Kildare,

Killorglin, Killybegs, Kilmallock, Lucan-Dodds-

borough, Malahide, Maynooth, MHlstreet, Mitchels-

town, Moate, Monasterevin, Mountrath, Moville,

Portarlington,

Portlaw,

Rathdrum,

Rathluirc,

Roscrea, Rush, Skerries, Swinford,

Swords,

Tallaght, Thomastown, Tullow.

•

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