The chief executive and chairman of electrical giant Glen Dimplex, Sean O'Driscoll, has brought another case alleging he suffered substantial losses due to alleged misrepresentation of property investment funds operated by the former Anglo Irish Bank.
Mr O'Driscoll now has five sets of proceedings against State-owned Irish Bank Resolution Corporation (IBRC), Anglo's successor in title, claiming total losses of some €5.5 million arising from his investments in various funds.
His counsel Bernard Dunleavy said yesterday the latest case alleges misrepresentation and negligent misstatement in relation to a property fund, in which Mr O'Driscoll invested in 2007.
Value distressed
Mr O’Driscoll is alleging the bank’s investment brochure failed to disclose to him the properties were being purchased by clients of the bank with funds provided by the bank at a time when the value of the properties was “under water”, counsel said.
In his case, Mr O’Driscoll alleges Anglo, having advanced loans to clients to buy the properties, then used monies from him and others to acquire the same properties at a time when the value of those properties was distressed. As a result, he suffered losses of some €500,000, it is claimed.
IBRC has also brought its own proceedings against Mr O’Driscoll over alleged failure to repay €1.8 million in loans advanced for investments in funds operated by the bank.
Yesterday, Mr Dunleavy secured leave from the President of the High Court, Mr Justice Nicholas Kearns, to bring a fifth action against IBRC.
Mr Dunleavy also told the judge his side would apply to the Commercial Court to have the latest case consolidated with the other proceedings.
In his other four actions, initiated from July 2012, Mr O'Driscoll is claiming about €5m against IBRC in relation to a division of the bank specialising in personal and retirement investment services, the IBRC Assurance Company .
Negligent mis-statement
He is claiming damages for alleged mis-presentation and negligent mis-statement regarding his decision to invest in four different funds. His claims include €2m relating to his investment in the Woolgate Exchange building in London while he is also claiming for losses arising from an investment in the bank’s fund for hotels in New York.
IBRC’s own proceedings against Mr O’Driscoll of Granville Road, Blackrock, Dublin, have been adjourned pending the outcome of a consolidated hearing of Mr O’Driscoll’s actions on terms including his lodging €1.8m into a solicitor’s account to meet the bank’s claim should it succeed.
IBRC is seeking judgment for €1.8m over Mr O'Driscoll's alleged failure to fully repay loan facilities related to the Woolgate Exchange Geared Property Fund, the Newbury Street Fund and the Anglo Taurus Retail Geared Property Fund. One facility for US$500,500 (€380,000) was to part finance Mr O'Driscoll's investment in the New York hotels fund.
