The High Court has granted Allied Irish Banks, plc (AIB) summary judgment against Elizabeth Murray and Laurence Murray over guarantees they gave for liabilities of Soljet Limited, a company of which both were directors.
In a judgment delivered on 3 May 2019, Mr Justice Max Barrett said the affidavit evidence did not disclose an arguable defence and that there were no issues requiring a plenary hearing. The court acknowledged the difficult position facing each defendant but said that was not enough to refuse the bank’s applications.
Elizabeth Murray signed an unconditional and irrevocable joint and several guarantee on 15 December 2015. The judgment says it carried a prominent warning about the consequences and advised her to obtain legal advice; she signed it in the presence of her solicitor. AIB made demand under the guarantee on 28 June 2017.
She argued that, although a director, she was not involved in Soljet’s daily operations and had difficulty obtaining information from her son and the company. She also said she signed under pressure from AIB. The judge rejected those points, noting that she had access to her solicitor and that her evidence indicated pressure, including concern about the potential loss of the family home, came in particular from Mr Murray. The judgment also records that she thanked AIB officers in a letter the day after signing.
Ms Murray further relied on a facility letter requiring confirmation that guarantors had received legal advice before funds were drawn down. The judge said the condition was for the bank’s benefit and could be waived. He also concluded that, by proceeding with the drawdown, the bank and borrower had at least impliedly agreed that the condition would not apply.
Laurence Murray also guaranteed Soljet’s liabilities on 15 December 2015. His defence centred on an allegation that the receiver appointed when Soljet went into receivership had not acted in the company’s best interests. The judge said the receiver acted as agent for Soljet, the mortgagor or chargor, and AIB was not liable for the receiver’s actions.
The order grants the summary judgments sought against both defendants. The judgment does not state the sums awarded.