Courts / Cork / Report

Investment fund secures €47m judgement against developers

Date
2015-10-22

Stage
Hearing Or Decision

Primary locality
Cork

County
Cork

Summary

At the High Court in Dublin, an investment fund has secured a judgment of €47 million against property developers Michael and Kevin Corbett for unpaid loans, with an additional €10 million ordered against Michael Corbett alone. LSREF III Achill Investments Ltd, which acquired the loan facilities from Ulster Bank, sought summary judgment in the Commercial Court following the Corbetts' failure to repay monies advanced in 2010 and 2011. The loans, which were repayable on demand, financed various property developments across Cork including office buildings, student accommodation, and commercial premises. Mr Justice Max Barrett granted judgment, noting that whilst he sympathised with the developers' circumstances, the law provided no basis to defer the case to a full hearing. The judge used the ruling to highlight the vulnerability of a category of borrowers who fall outside consumer credit protections, describing them as occupying a middle ground between consumers and commercial actors. He emphasised that courts must remain vigilant against unconscionable bargains but found no such concerns in this matter.