The Bank of Ireland attempted to achieve benefits for itself by depriving a Co Kildare farmer of entering a Government-backed "distress" scheme to aid farmers, the High Court has held.
Mr James Behan, a former large farmer now on the dole who failed in two associated claims against the bank, was yesterday awarded almost £21,000 damages against it in proceedings relating to a third claim.
Mr Justice Morris said Mr Behan, who farmed at Dollardstown House, Athy, Co Kildare, had made a claim for damages relating to the Reduced Interest Scheme for Farmers in Severe Financial Distress.
He said the scheme was introduced by the Minister for Agriculture on April 1st, 1982, to provide relief from high interest rates for certain classes of farmers on certain bank borrowings.
Mr Behan had applied for inclusion in the scheme on May 28th, 1982, and by January 1984 the Bank of Ireland had been given authority to "draw down" from it on Mr Behan's account.
Mr Behan had claimed there was unreasonable and improper delay on the part of the bank in permitting him to enter and enjoy the benefits of the scheme.
Mr Justice Morris held that after January 1984 the bank acted in an arbitrary and improper manner, using his lack of resources as a reason for depriving him of the benefits of inclusion in the scheme. "I am satisfied the bank were attempting to achieve benefits for themselves by depriving or withholding Mr Behan's entry into the scheme," he said.
In July 1985 Mr Behan had agreed to pay, and the bank had accepted, a £165,000 full and final settlement of his £214,000 indebtedness to it. Despite this agreement, the bank had used £18,455 credits from the Government distress scheme to reduce his indebtedness to the bank. It was clear that having made the agreement to accept the reduced settlement, the bank was not entitled to apply this money in the manner in which it did.
Moreover, on the winding-up of the Government scheme in 1985, the bank would have been credited by the Revenue Commissioners with an equivalent amount against its corporation tax liabilities.
Mr Justice Morris held Mr Behan was entitled to this amount with interest. Since this successful claim had been part of the proceedings for nine of the 18-day hearings, he awarded Mr Behan nine days' costs for the trial and the Bank of Ireland nine days' costs. He made no order to set one set of costs off against the other.
Mr Noel Clancy SC and Mr Michael O'Kennedy SC appeared for Mr Behan. Mr Dan O'Keeffe SC appeared for the Bank of Ireland.