4.10.3THE SCHEDULE : An Endorsement of the Pre-Contract Misrepresentations

THE SCHEDULE (Document 6B of Appendix 1/6), titled FIRST NATIONAL HOME-WAY MORTGAGE PLAN, is the endorsement by Irish Life of the specifics of the Endowment Mortgage Contract. It is a document signed, sealed and delivered by Irish Life Assurance plc. (See Section 1.3: The Mortgage Contract Documentation.) In effect, in Law, THE SCHEDULE has the equivalent status of a deed under seal.

It was the foremost document in the policy documentation forwarded by Irish Life post-contract.
(See Appendix 1/6.)


It is clearly and unambiguously indicated by Irish Life in THE SCHEDULE that ALL (100% Percentage Allocation) premiums are invested in the HOMEWAY MORTGAGE FUND (Series 4).

But none of the premiums are invested in the first year and only 96% of the premiums are invested in subsequent years. The indication in THE SCHEDULE that there is 100% allocation of premiums to the Homeway Mortgage Fund therefore constitutes a ‘false statement’.

Both First National and Irish Life KNOW this.


While it was the pre-contract representations made by First National and First National / Irish Life that induced the Endowment Mortgage Contract, the above false statement in THE SCHEDULE (a statement sanctioned by Irish Life with both signature and seal ) imparts the status of a contrived deception to those pre-contract representations (i.e. those described in Section 4.10.1 and Section 4.10.2).


Consider the following irrefutable evidence of deceit:

The understanding of ‘investing’ from THE SCHEDULE is clearly that, from the Date of Commencement of the Assurance (i.e. 1st August 1991), 100% of premiums paid by my wife and I would be allocated to (i.e. put into / invested in) the HOMEWAY MORTGAGE FUND (Series 4). This understanding of ‘investing’ was totally compatible with the pre-contract representations by First National / Irish Life in their Mortgage Quotations.

Notwithstanding the fact that the mutation process of investment, as applied by the policy Provisions, Privileges and Conditions (described in Section 4.6), gives lie to this understanding of ‘investing’, DECEIT is most clearly evidenced by analysing the month by month breakdown of the Investment / Fund Value process (see Appendix 4/2) elicited from Irish Life in 1994. (See Section 4.9.2.)

It is crystal clear from the breakdown provided by Irish Life (remember this breakdown was for an Endowment Mortgage of £40,000 over 15 years, the one chosen by my wife and I) that, while the Premium Payment is £147.20 per month each month from the Date of Commencement (i.e. from 1st August 1991), as was indicated in THE SCHEDULE, the Premium Invested in the FUND is Zero over the first twelve months and only £141.31 (i.e. 96% of £147.20) in all subsequent months.

It is no tortured interpretation to state that the Percentage Allocation of Premiums to the HOMEWAY MORTGAGE FUND (Series 4) is Zero for the first twelve months and 96% for the subsequent months.

It is no tortured conclusion to state that: The Statement in THE SCHEDULE, that the Percentage Allocation of Premiums to the HOMEWAY MORTGAGE FUND (Series 4) is 100%, is a FALSE STATEMENT.

It is a FALSE STATEMENT signed, sealed, and delivered by Irish Life.

It is a FALSE STATEMENT that imparts the status of DECEIT to its antecedent representations by First National and Irish Life.
(See 4.10.1 and 4.10.2.)

It is a FALSE STATEMENT that compounds those Misrepresentations.


In Law, a deed under seal is an enforceable contract. If THE SCHEDULE states that there is 100% Percentage Allocation invested in the fund, then such investment should be specifically performed. Also, remember that an instrument under seal constitutes a speciality and, as such, the limitation period for legal action is twelve years. (See Section 2.9: The Time Limit for Legal Action.) These matters will be of particular relevance to similarly structured and executed investment products.

(See Section 2.3.2: Fraudulent Misrepresentation. See also Section 2.8.1: The Right to Revoke the Contract, and Section 2.8.2: The Measure of Damages as a result of a successful Action based on the Common Law liability under Fraudulent Misrepresentation.)


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