A LONDON-BASED spread-betting company is suing Limerick businessman Pat Mulcair for €1.8 million which was allegedly overpaid to him by mistake last June but has not been returned.
The proceedings by City Index Ltd against Mr Mulcair, Ballyclough House, Ballysheedy, Co Limerick, alleging he has been unjustly enriched by €1.8 million, were admitted to the Commercial Court yesterday by Mr Justice Peter Kelly.
When Mr Justice Kelly asked Brian Kennedy SC, for Mr Mulcair, to indicate what the defence to the case might be, Mr Kennedy said Mr Mulcair was saying that certain representations were made to him and, in reliance on those representations, he had continued with an open account.
When the account reached a certain level, Mr Mulcair decided to close it and would say he would have closed the account earlier when it was at a lower level. Mr Kennedy added that his side may seek to join another party to the case.
City Index Ltd, with offices at Moorgate, London, provides retail and commercial derivative and foreign exchange investment services to clients.
City Index claims a spread trading account was opened by Mr Mulcair on November 13th, 2007, with Mr Mulcair's introduction being effected by J E Davy stockbrokers in Dublin.
City Index claims it gave Davy a power of attorney in relation to Mr Mulcair's account and that Mr Mulcair carried out a significant number of trades in euro and dollars between November 2007 and June 2008.
It claims that, following margin calls made by City Index, Mr Mulcair transferred money from his accounts with Davy to City Index which then credited Mr Mulcair's accounts with the sum of €800,000 on June 13th, 2008, and the sums of €350,000 and €650,000 on June 27th, 2008.
However, in error and based on a mistake of fact, City Index claims one of its agents, acting in an unauthorised fashion, had credited Mr Mulcair's account with duplicates of those same sums - €800,000 on June 16th, 2008, and the sums of €350,00 and €650,000 on June 30th, 2008.
City Index claims Mr Mulcair gave notice on July 9th, 2008, he wished all funds to be returned from his account. It claims the remaining balance at that point, not including the overpayment of $758,502.32 was paid out to the Davy account of Mr Mulcair on July 9th, 2008, and Mr Mulcair's account was kept open.
City Index said it discovered on July 24th the duplicate credit paid to Mr Mulcair's account. It said the account was marked with a €1.8 million debit balance which remains outstanding.
Discussions between City Index and Mr Mulcair since then had failed to resolve the matter and, despite a written demand for repayment being made on September 5th last, no repayment had been made.
