A HIGH Court judge has made formal orders overturning the controversial transfer by former Anglo Irish Bank chief executive David Drumm of his half share of his former family home at Malahide, Co Dublin, into the sole ownership of his wife Lorraine.
In proceedings against Mr Drumm and his wife, Anglo had sought to overturn the May 2009 transfer of ownership of the property at Abington, Malahide, arguing it was a fraud against creditors, while the Drumms insisted it was for taxation reasons.
Ms Drumm last month gave an irrevocable consent to the transfer being quashed and the property reverting into the joint ownership of the couple, meaning applications could be made to have Mr Drumm’s share realised for the benefit of his creditors. The house has been valued at €1.2 million.
No formal order could be made in the case because Mr Drumm filed for voluntary bankruptcy in the US last October, days before proceedings were due to be heard against him and his wife in the Commercial Court.
After Ms Justice Elizabeth Dunne granted High Court orders providing for Irish courts to assist US trustee Kathleen P Dwyer in administering Mr Drumm’s bankruptcy and vesting ownership of the Abington property in the trustee, the cases against the Drumms came back before the Commercial Court yesterday.
After hearing from Bernard Dunleavy, for the trustee, Mr Justice Peter Kelly made an order setting aside ab inito (as if it had never happened) the May 2009 transfer of the property from the joint ownership into Ms Drumm’s sole name.
He continued an order restraining Ms Drumm from any dealings in relation to the house, pending the lodging of appropriate documents concerning it with the Property Registration Authority so as to give effect to the orders of Ms Justice Dunne. Once those documents were lodged, the order should be lifted, he directed.
Anglo’s Commercial Court action against Mr Drumm over €8 million in unpaid loans, and his counter-claim for €2.6 million, remains outstanding. Mr Justice Kelly said he would adjourn the matter to February 22nd.
