ANGLO IRISH Bank is seeking €21 million summary judgment orders against four Limerick-based solicitors over guarantees allegedly provided by them over unpaid property development loans. The solicitors previously indicated to the bank they were unable to pay such sums.
Bernard Dunleavy, for the four, said yesterday they will contend that none of them had any direct dealings with the bank and that Anglo had authorised a co-guarantor and developer, Michael Daly, to deal with them as its agent in relation to the guarantees.
If that was correct, it would be “surprising”, Mr Justice Peter Kelly remarked yesterday when transferring the proceedings to the Commercial Court.
The action is against Dermot O’Donovan, Michael Sherry, Aidan Frawley and Thomas Dalton, all partners in the firm Dermot G O’Donovan Partners, and arises from personal guarantees allegedly provided by them over loans to companies and partnerships linked to the Fordmount property group.
Maurice Collins SC, for Anglo, said all of the defendants are solicitors, and the suggestion they had relied on Mr Daly as an agent of Anglo was “wholly implausible”. His side was prepared to consider their affidavits but, unless those affidavits disclosed a defence, the bank wanted to proceed for summary judgment.
Mr Justice Kelly made directions for the exchange of affidavits and returned the matter to next month.
Anglo has brought the proceedings arising from unpaid loans of more than €165 million advanced to three companies in the Limerick-based Fordmount property group and two partnerships.
The loans were advanced to buy lands and buildings in and around Limerick city and county for development and sale/lease, including office, retail and residential units and retirement homes. When they were not repaid by December last, the bank appointed a receiver over most of the assets of the companies.
It previously brought proceedings against Michael Daly, North Circular Road, Limerick, in which it is claiming €86 million judgment orders under personal guarantees provided by him over the loans. Mr Daly has said he cannot pay, and the proceedings against him will be heard in a full plenary action later this year.
Mr Daly has alleged the four defendant solicitors were involved in some of the deals and had provided guarantees, but wanted their identities kept secret.
He has also claimed the firm Dermot G O’Donovan Partners was at all times the legal adviser to the Fordmount property group and his own personal legal adviser.
Any loans entered into by the partnerships were done as partners, and any guarantees were on the basis of five guarantors, he has claimed.
Anglo claims Mr Daly was a director at all material times of Fordmount Property Group Ltd, Fordmount Developments Ltd and Fordmount Developments (Savoy) Ltd, all with registered offices in Limerick.
Anglo also claims he was a 50 per cent partner of the Fordmount Partnership and the St Munchin’s House Partnership, both of Bishops Quay, Limerick.
It claims the other members in those partnerships were the defendant solicitors – Dermot O’Donovan, Michael Sherry, Aidan Frawley and Thomas Dalton – all of whom held a 12.5 per cent membership.
