Court of Appeal rejects AIB challenge in €2.6m case; full hearing remains

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

The Court of Appeal dismissed AIB Mortgage Bank and Allied Irish Banks plc’s appeal against a ruling that Kevin O’Brien and Gillian O’Brien could contest the banks’ claim for more than €2.6 million at a full hearing. The appeal concerned whether they could rely on their argument that the 2010 loan facilities lacked consideration; the banks’ underlying claim was still to be determined at a plenary hearing.

The High Court had found substance in the couple’s argument that no new funds were advanced or drawn down under the 2010 facilities, which related to earlier lending. It ruled that the case should proceed to a plenary hearing, where the amount due and the applicable loan facility could be considered.

In a later Court of Appeal ruling on costs, the court refused to stay the costs awarded to the couple for defending the appeal.