The High Court has granted Allied Irish Banks plc summary judgment for €11,821,000 against Gemma Hiney, rejecting her request to have the case sent to a plenary hearing.
In a judgment delivered on 5 June 2018, Ms Justice O’Regan found that the defendant had no fair or reasonable probability of a real or bona fide defence to the bank’s claim on the material before the court. The ruling concerned the bank’s motion for final judgment; it did not decide a plenary trial after hearing evidence.
The bank’s claim arose from a loan facility of €11,734,371 advanced to Drogheda Leisure Facilities Ltd in 2011 to refinance existing facilities. The company accepted the facility in December 2011. The bank relied on a written guarantee signed by Ms Hiney in November 2008, limited to €11,861,000. The judgment records that the loan was not repaid by the stated deadline of 31 March 2012 and that the bank demanded payment from Ms Hiney in September 2016.
Ms Hiney argued that her earlier 2006 guarantee had been joint and several with five co-guarantors, but that the 2008 guarantee changed her liability to a several guarantee without the bank explaining the significance. She also alleged that company shareholder and director Eugene Caulfield had received more favourable treatment, and said she believed the bank had entered settlement discussions with her co-guarantors. She argued that the alleged changes affected her ability to rely on section 17 of the Civil Liability Act 1961.
The judge concluded that the documents undermined the proposed disclosure and preferential-treatment defences. They showed that the 2008 facility sought several guarantees, including a separate, smaller guarantee from Mr Caulfield; the 2011 facility letter was copied to Ms Hiney; and her 2008 guarantee was witnessed by a solicitor. The judgment also referred to 2006 company minutes recording that Mr Caulfield did not wish to give a joint and several guarantee.
The court held that the settlement-discussions assertion was unsupported and did not establish that a settlement had been reached. It also noted that Ms Hiney had not disputed the bank’s evidence that the claimed balance reflected credits and allowances. The judge said the section 17 issue would arise only if a breach of duty by the bank were established. Summary judgment was granted for €11,821,000, the sum claimed in the motion. The judgment does not state that the court separately awarded the interest also sought.