Liquidator’s duties to Owners Management Company

The High Court has given judgement on the tricky question of a liquidator’s duties under the MUDs Acts.

In Lee Towers Management Company and Lance Investments (HC judgement 19th July 2018), Ms Justice Baker ruled that the MUDs Act did not impose a responsibility on the liquidator to complete works to the common areas of a housing development. The Owners Management Company had obtained orders under the Multi Unit Dwellings Act compelling the liquidator to complete the works pursuant to the development agreement. The liquidator argued on appeal to the High Court that the Companies Acts imposed a statutory scheme of priorities in an insolvency which could not be trumped by the MUDs Act. The cost of completing and upgrading the common areas of the development will thus call on the owners of the apartments rather than on the developer. As in the case of In re Bohergar Develpoments Ltd (2014 IEHC), there may be bonds taken out as a condition of the planning permission which can fund the completion of important works and can soften the blow for owners.

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