A company and one of its directors, former High Court taxing master James Flynn, are not proceeding with their High Court action alleging a settlement had been reached last year in proceedings by AIB seeking judgement against them.

AIB in its action seeks summary judgment for €5 million from Fortberry Ltd over its alleged failure to satisfy a demand for repayment of monies lent in 2008. The bank also seeks judgment against a director of that company, James Flynn, of Dowth, Co Meath, for €2.5 million on foot of a guarantee he allegedly entered into in respect of the loan facilities. AIB's action is opposed.

AIB’s application for judgment came before the High Court last November but did not proceed after the side entered talks to resolve the dispute.

Specific performance

AIB contends the matter was not resolved but the firm and Mr Flynn brought proceedings claiming it was. In their proceedings, they sought specific performance of the alleged settlement agreement.

AIB, while accepting discussions took place, said any agreement to resolve was subject to approval by the bank’s Credit Committee which was not given.

On Wednesday, Mr Justice Paul Gilligan ruled the company and Mr Flynn's claim should proceed by way of a preliminary issue next week prior to the hearing of AIB's application for summary judgment.

On Thursday, Mr Justice Gilligan was told by Rossa Fanning BL, for AIB, that, on consent, the claim by the company and Mr Flynn the case had already been settled could be withdrawn and dismissed.

AIB’s claim for judgment will proceed before the High Court next week, counsel added.