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High Court, by way of an appeal from a Circuit Court order restraining the completion of a proposed sale of property pending determination of proceedings involving the meaning and effect of certain management company agreements, sets aside the injunctive relief granted, on the grounds that: (1) the assignee of the lender's interest in the property is entitled to convey the property free from certain interests and rights of third parties (such as the management company alleges) over whom it ranks in priority owing to the terms of a secured mortgage(s); (2) the assignee did not consent to the execution of the impugned management company agreements previously relied upon to seek the injunction so granted; (3) the terms of the proposed sale do not purport to assign the benefits and burdens of the management agreements being relied upon; and (4) a receiver is not liable on foot of past contracts entered into by a company unless he has chosen to adopt such contracts.
Circuit Court appeal - order restraining receiver from completing sale of certain property pending trial of proceedings - amendment of terms of contract for sale - sale proceeds to be held by receiver in escrow pending trial - agreement with management company regarding common areas of development prior to appointment of statutory receiver - case pleaded regarding defendant's alleged failure to take transfer of common areas was frustrating sale - counterclaim requiring plaintiff to complete development of common areas - fire safety notices - subsequent receiver's appointment more limited - contract with purchaser for sale of plaintiff's property subject to conditions - interlocutory injunction application time lag - insufficient legal certainty in respect of entitlement of management company to maintain proceedings - test to be applied in respect of application for interlocutory injunction - mandatory relief - requirement for a strong case, not merely a serious issue to be tried - whether plaintiff is a trustee of management company's legal and beneficial interests in development - attempts to avoid statutory obligations - cannot assign burden of obligations - right to prevent common areas being disposed of - no evidence lending bank assented to execution of three management agreements regarding common areas - bank not bound by agreements - agreements do not have priority over mortgage in absence of bank's consent or pre-existing knowledege of their terms at time of execution of mortgage - lender's successor in title entitled to proceed to enforce its rights under mortgage in priority to management company's claim - no strong case - no serious issue to be tried - mortgagee's power to convey property freed from all estates interests and rights - management company has no cause of action against receiver or assignee of bank's interest in respect of proposed contract with purchaser regarding developer obligations under agreements - receiver has not adopted any of the management agreements - receiver has not carried out any works in common areas - receiver not involved in sales of units relying on management agreements - appeal allowed - balance of convenience - adequacy of damages - money judgment would satisfy management company's claims - undertaking as to damages may not be possible to meet - convenience favours refusal of injunction - delay in pursuing application for injunctive relief a relevant factor - injunction set aside - parties' observations on costs to be submitted by email within fourteen days
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