The Court of Appeal has dismissed Patrick Stack and Mary Stack’s appeal against a High Court summary judgment requiring them to pay Allied Irish Banks plc €2,253,590.84, plus costs to be taxed and ascertained.
The appeal concerned whether the couple had shown a fair or reasonable probability of a bona fide and credible defence that warranted a full hearing. The Court of Appeal held they had not. It did not conduct a plenary trial of the underlying dispute; it reviewed the High Court’s refusal to send the case to one and dismissed the appeal.
The bank’s claim arose from guarantees it said the couple gave in July 2010 to support a €3.92 million facility for Carrignagour Limited. The company entered liquidation in November 2012. The bank initially sought €3,016,995, but later said it would limit its claim to €2,253,590.84 after removing interest and allowing credits. The High Court entered judgment for that lesser sum in May 2017.
The couple argued, among other things, that the bank had not shown the company accepted the facility terms. The Court of Appeal said acceptance could be established by evidence beyond a signed copy of the facility letter. It relied on a company resolution dated 9 July 2010 accepting the offer, signed by Mr. Stack as chairman and Mrs. Stack as secretary, along with evidence of post-resolution drawdowns and related bank correspondence. The court rejected the argument that the bank’s reduction of its claim showed it had changed the legal basis of its case.
Mrs. Stack also said the signature on her guarantee was forged and that she did not recall signing it. The court found those assertions inconsistent and unsupported by evidence capable of establishing a credible defence at the summary judgment stage. It noted the company resolution, the bank’s letter enclosing the proposed guarantee, and her earlier guarantee for a 2009 facility. These were matters the court considered in deciding whether the appeal met the threshold for a full hearing; it did not hold a trial on the forgery allegation.
The Court of Appeal concluded that the High Court had not erred in granting summary judgment and dismissed the appeal, leaving the judgment for €2,253,590.84 and the costs order in place.