A dispute involving AIB, a company and a retired High Court taxing master over an alleged settlement of a demand for repayment of money has come before the High Court.

Mr Justice Paul Gilligan was told AIB brought proceedings seeking judgment for €5 million against a company, Fortberry Ltd, over its alleged failure to satisfy a demand for repayment of monies loaned to it in 2008.

Rossa Fanning said it also wants judgment for €2.5 million against a director of the firm, James Flynn, of Netterville Manor, Dowth, Drogheda, Co Louth on foot of a guarantee in respect of the loan facilities. Mr Flynn is a solicitor and a retired High Court Taxing Master, an official who decides disputes over legal fees.

The bank’s claim, which is fully defended by the company and Mr Flynn, was due to be head by the High Court last November but did not proceed after the parties engaged in discussions aimed at resolving the matter.

Mr Fanning said the bank contends the matter was not settled and that its action, listed for hearing at the High Court next week, should proceed.

Specific performance

The company and Mr Flynn maintain the matter had settled following talks and have brought proceedings against AIB seeking specific performance of the alleged settlement and a declaration it is binding on AIB.

Mr Fanning said it was accepted discussions had taken place but the bank’s position was any agreement to resolve was subject to approval by its Credit Committee which had not been given.

While AIB argued there was no settlement, it wanted the action by Fortberry and Mr Flynn to proceed by way of a preliminary issue when the case seeking summary judgment comes up for hearing next week.

Counsel said the issue in the action by Fortberry and Mr Flynn, which action the bank claims is frivolous and vexatious, is fairly net- whether there was a settlement or not. Evidence may be required from lawyers involved in the case last November, he said.

Arthur Cunningham BL, for the company and Mr Flynn, said it was their case the matter had been settled.

Matters were not as simple as Mr Fanning had said and his clients required discovery of certain material from AIB in order to advance their action, counsel added.

Mr Justice Gilligan said the action by the company and Mr Flynn should proceed by way of a preliminary issue on Wednesday. Any issues concerning exchange of pleadings and discovery of documents should be addressed by then, he directed.