Ben Gilroy Takes Back The Junction Bar from Receiver

Ben Gilroy and the owner of The Junction Bar in Glounthaune, Co Cork, decided it was time to take back the bar from the receivers who had moved in. In this TV3 report the owner politely informed the manager (in other words, the receiver) that he has been dismissed. The owner of course has the right to do this as the receiver acts as agent for both the owner of the premises, and the bank in question. As the owner or The Junction Bar did not contract the receiver to act as agent for them, the owner has no obligation for the receiver to do so.

Aside from this fact, the receiver has an equitable duty of care to both the bank, and the owner of The Junction Bar, and as they have not performed on this duty of care, the owner has opted to dismiss them. The topic is covered in more details in the video concerning Mr. Gerry Burns. In a true equitable duty of care, the receiver would need to see the tri-party agreement used to create the loan in question. It is a fair assessment to suggest that a receiver who would ask for such things from the bank (which they may not have) would not be called in as a receiver on behalf of the bank in the future. Due to this implied incentive not to ask, receivers tend not to perform as well on their duty of care to the owner of the property, as they might do for the bank that called them in the first place, rather than renegotiating the loan to see that it gets paid without need for litigation.

As ever Ben has advised the owner of The Junction Bar to give the banks nothing until they document and prove the obligation. Given the banks tendency towards securitization, they may find that challenge difficult if not impossible. Due to this, the bank may regret not just renegotiating the loan, and getting their money back more slowly and certainly surely.

What Are Your Thoughts?