The High Court awarded Patrick Loonam €181,386 after finding that false representations and later undue influence led him to give €212,540 to William Kenny and companies associated with him. The award was made jointly and severally against Kenny and four companies, after deductions for money and goods Loonam received and a 10% reduction for contributory negligence.
In a judgment delivered on 14 July 2015, Mr Justice Brian McGovern found Kenny had made untrue and exaggerated representations about the financial strength of the businesses. Loonam was induced at least in part to enter into agreements by those representations, which the judge found were made fraudulently or recklessly. The judge also found that, by the time of Loonam’s later investments, Kenny was aware Loonam was vulnerable and gullible and had exerted undue influence over him.
Loonam had sought rescission of agreements, alleging fraudulent misrepresentation, undue influence and an improvident or unconscionable transaction. He began investing after responding to an online advertisement in November 2011. He alleged that Kenny represented two businesses as solvent and profitable and worth about €75,000 each, and said a catering trailer valued at €5,000 was being sold for €10,000 but could be bought for €5,000. The judgment records those as Loonam’s allegations; it does not make a separate finding on the trailer’s valuation.
The judge said Loonam had received legal advice warning that there was insufficient information to support the initial investment and advising him to seek more. Loonam proceeded. The court found he was not under undue influence when he made the initial €80,000 investment, but was partly induced by misrepresentations. It found that later payments were made under Kenny’s undue influence. The court rejected the claim that Karen Kenny had misled Loonam, finding the evidence of her involvement inconclusive, and made no order against her.
The court accepted that Loonam gave €212,540 for the benefit of the businesses and received €1,000 in salary payments and goods and equipment it valued at €10,000. It deducted those €11,000 from the amount advanced, leaving €201,540, then applied the 10% contributory negligence reduction to reach €181,386.
Judgment had already been entered in default of defence against the four companies, with damages to be assessed. The judge described them as likely insolvent. The order in this judgment was for damages jointly and severally against Kenny and those companies. The judgment does not specify separate findings or amounts for each defendant.