The High Court has adjourned for a week proceedings by businessman Hugh O'Regan and others aimed at requiring Bank of Ireland to provide an alleged agreed indemnity for any adverse consequence arising from the bank's alleged mismanagement of their accounts.
Mr O'Regan has said in an affidavit that the granting of the indemnity is critical to the survival of Sharmane Limited, the parent company of a number of subsidiaries which own pubs and hotels across Dublin, including the Morrison hotel. It has gross assets worth some €30 million and about 450 employees.
The court heard Sharmane was in the process of selling some of its pubs to Guerneville Holdings Limited and it was claimed the indemnity is crucial to that sale.
The bank has denied there was ever any agreement on an indemnity or that it has any liability for the alleged alteration of Dale Associates banking mandates. Dale Associates is a management company within the Thomas Read group. The bank also denies any liability for the "sweeping" of monies from the accounts of Dale to the accounts of other group companies and former group companies of Dale. The bank also argued the sale of Sharmane was completed without any tax indemnity being provided and the proceedings were an "ill-conceived attempt" to pin the bank with a responsibility it did not have.
Last week, Mr Justice Frank Clarke refused an application by Sharmane for a mandatory injunction requiring the bank to provide the indemnity. He refused the injunction on the basis that such a mandatory interlocutory order at this stage of legal proceedings would effectively amount to specific performance of the alleged indemnity agreement. He adjourned the matter with a view to securing an early hearing of the full proceedings against the bank.
When the case was mentioned yesterday, Mr Bill Shipsey SC, for Sharmane Ltd, Mr Hugh O'Regan, Mr Martin Conroy and Thomas Read Holdings Limited, said it seemed there had been communication to the press by Guerneville about matters but his side had not been communicated with.
Mr Justice Clarke adjourned the case to allow Sharmane and the bank time to look into the matters raised by Guerneville.
