A man being pursued by the EBS Building Society to repay loans of €8.3 million to purchase development lands in Co Tipperary has alleged culpable conduct by the society in allegedly processing loans on the basis of a “fabricated” increased site valuation.
David Dempsey, Poolahoney Lodge, Ballyduff, Arklow, Co Wicklow, told Mr Justice Peter Kelly today he wanted a valuer with Sherry FitzGerald to be joined to the case brought by the EBS against Mr Dempsey.
Mr Dempsey said his defence to the case would involve an allegation of culpable conduct by the EBS in relation to how it had processed loans made to him.
Mr Dempsey said the loans were on the basis of a “fabricated” site valuation and he wanted the valuer to be joined so as to say he was told to do a valuation for €10 million when the site was not valued above €6 million.
The judge told Mr Dempsey, who was representing himself having earlier told the court he could not afford lawyers, said he would need to put such matters on affidavit.
The judge added he was not saying what Mr Dempsey had told the court amounted to a defence but Mr Dempsey would have the opportunity to set it out on affidavit.
The case was adjourned to April 2nd when the society will seek judgment for €8.3 million against Mr Dempsey, who in turn will have to show he has an arguable defence to the case to avoid judgment being entered.
In its action, EBS claims it had agreed in May 2006 to advance €7.91 million to Mr Dempsey to facilitate his purchase of 20 acres of lands at Tyone, Nenagh, which was being sold with planning permission for 199 residential units and a creche.
The society said it had also offered Mr Dempsey a construction loan for €6.596 million but that facility was never accepted by Mr Dempsey and was later formally withdrawn.
The society claims the €7.91 million loan advanced was an 18 month only facility and was secured by a first legal charge over the Nenagh site and other properties. Full repayment was due in May 2008 and was demanded from Mr Dempsey, but some €8.3 million was now due and owing.
The society said it had also demanded possession from Mr Dempsey of various properties put up as security for the loan. It said Mr Dempsey had no bona fide defence to the proceedings against him and, while he had agreed to sell two properties to realise the security, he had not agreed the terms.
