The High Court has ruled that Allied Irish Banks plc’s action against the estate of Thomas Pollock was barred by statute, finding that the loans at issue fell due before his death and that proceedings were brought too late.
The judgment, delivered by Ms Justice Baker on 21 October 2016, concerned two loan facilities made in 2009 for €519,803.01 and €2,236,953.60. They were secured over property in the title of Mary Pollock and her then-late husband, Thomas Pollock.
The case was before the court on a motion for summary judgment. The parties agreed that the court should first decide a preliminary point of law: whether the action against William Roche, sued as a personal representative of Mr Pollock’s estate, was time-barred. The claim against Justin Sullivan had been discontinued, and judgment had already been granted against Mary Pollock. The judgment addressed only the claim against Mr Roche in his representative capacity.
Mr Pollock died on 7 November 2010. A grant of probate issued to Mr Roche on 22 January 2015. AIB began proceedings on 3 March 2015. The bank relied on a demand served on 4 February 2015, after the grant issued, and did not rely on an earlier demand letter sent in May 2013.
AIB argued that its cause of action against the estate arose only when a valid demand was made. Mr Roche’s position was that the loan contracts set 30 September 2009 as the date for full repayment, so the debt became due without a further demand.
Justice Baker interpreted the facilities as short-term loans intended to be repaid or refinanced by that date. She found that the contractual wording made repayment due on or before 30 September 2009, and that no demand was required on that date. The court also rejected AIB’s argument that affidavits filed in connection with other matters amounted to a written acknowledgment of the debt to the bank.
The court concluded that the cause of action accrued on 30 September 2009 and existed when Mr Pollock died. Under section 9 of the Civil Liability Act 1961, as amended, the claim against the estate had to be brought within two years of his death. Justice Baker therefore held that the action against Mr Roche was statute-barred.
The judgment decided the preliminary limitation issue on the summary judgment motion. It did not determine the discontinued claim against Mr Sullivan or revisit the judgment already granted against Mrs Pollock.