AIB is entitled to recover just over €6 million from tax consultant Kenneth McMorland, Mailcoach Road, Sligo, company secretary of Foresthaze Developments Ltd, a company chaired by former EU commissioner Ray Mac Sharry.

Ms Justice Miriam O’Regan has thrown out a bid by Mr McMorland to have AIB’s demand for summary judgment against him dealt with at a full High Court hearing. Mr McMorland claimed the bank failed to provide him with independent legal advice when he guaranteed all of his company’s debts.

Judge O’Regan said in a reserved judgment that an earlier High Court case demonstrated that not only was Mr McMorland a tax consultant and company secretary he was also the promoter and chief executive of Foresthaze Developments Ltd incorporated in July 2006.

It was claimed in the earlier case that, around April 2006, Mr McMorland suggested the purchase of a site at Hazelwood, Sligo, for a development of more than 300 houses, by Foresthaze Developments.

Chief executive

It was alleged he would be chief executive of Foresthaze Developments holding 56 per cent of shares; quantity surveyor Jackie McMahon would be operations manager having 20 per cent; Ray Mac Sharry, chairman, would have 18 per cent with his son, Marc Mac Sharry, holding 6 per cent.

Ms Justice O’Regan said Mr McMorland had challenged the summary judgment of €6,091,208 awarded against him to AIB in June 2014. He, Mr McMorland, had signed a guarantee for the full indebtedness of Foresthaze Developments.

Having considered legal precedents put before the court, Ms Justice O’Regan said she believed the matter could be disposed of on a summary basis and would not accede to Mr McMorland’s request to adjourn the matter for full plenary hearing.

She said the bank was entitled to judgment against Mr McMorland in the sum of €6,091,208 and its legal costs but would put a stay on her orders until November 30th.