Where a foreign immovable is sold, the rights of the persons entitled to the proceeds do not cease merely because the proceeds have been brought into the jurisdiction. The law of the place continues to apply to the proceeds of sale and debts to be paid out of them accordance with the priorities recognised by that law.
A trust declared over the proceeds of sale of foreign land is permissible even though it may be forbidden by the local law while the immovable remains unsold. This is so unless the owner is for some reason bound by that law. Until the sales takes place, the immovable is subject to the local law and the right to enjoy it is governed by it. In the same way where foreign land is settled on a trust for sale, the trust would not operate until after the sale.
The domestic courts have power to exercise personal jurisdiction in respect of foreign immovables against a person within the jurisdiction, where there is an equity between the parties. This may arise from a contract, fraud, or trust. This is so provided the issue of title is not directly involved. The equity must not depend on the existence of the foreign law, where the immovable is situated.
The equity must be personal in nature. It may arise from a fiduciary relationship between the parties. The courts will not exercise jurisdiction to enforce the principles of equity against third parties who have acquired title by local law. They will not impose on a foreign immovable a burden other than that which the local law requires it to bear.
The courts exercise equitable jurisdiction against third parties who are affected by equities under the local law, where the land is situated. If an Irish resident takes a foreign immovable property under an obligation to satisfy another person’s equitable claim out of it, the Irish court will enforce the claim by restraining him from applying the proceeds of the foreign land without making proper provision to satisfy the claim.
The principle that the Irish courts have jurisdiction where there is an equity between the parties, is subject to exceptions and limitations. The courts will not by an injunction prevent a person from enjoying that which the judgment of a foreign court, declares him to be entitled to. Where the foreign court having actual jurisdiction has determined prior litigation, interference would be contrary to comity and public policy.
The courts will not entertain an action where the law of the place where the immovable is situated would not allow the defendant to do what the courts would otherwise decree. They will not interfere where it would be useless or impossible to carry the order into effect. Accordingly a judicial sale of land outside the jurisdiction cannot be ordered. The court may make a personal order in the course of bankruptcy or litigation, but it is not directly effective.
Equitable remedies at the discretion of the court. The jurisdiction will not be exercised where the question can be more conveniently decided in the foreign courts than in Ireland.
The Irish courts may enforce a trust relating to foreign immovable property, where the defendant is within the state. They may decide whether there a valid trust over it exist. There may be injustice if the Irish equitable rules are enforced. Accordingly, the rules may be relaxed, if the relationship between that foreign claimant and defendant arose under a foreign law and is not equivalent to a trustee-beneficiary relationship in equity.