The High Court has granted Allied Irish Banks plc leave to enter judgment against William Sullivan for €2,510,082.95, the amount the bank said was due on 12 July 2016 under a loan facility jointly held with Michael Kelly. The order followed a summary judgment application concerning the First Facility only; the court made no order on the separate Second Facility, which the bank said had been discharged.
In a judgment delivered on 3 October 2017, Ms Justice Faherty considered whether Sullivan had raised an arguable defence requiring a full trial. The bank’s proceedings, issued in December 2014, had originally sought €5,508,731.48 from both defendants across two facilities. At the hearing, however, the bank pursued judgment only against Sullivan and only in relation to the First Facility.
The bank said the First Facility, sanctioned in 2006 for €3.6 million, renewed and restructured earlier borrowings in loan account 13052669 as well as providing further funds. Sullivan disputed that account. He argued that only €1 million had been drawn under the 2006 letter and that repayments left just €318,587.60 due when the bank made demand in June 2014. He also argued that the bank had not established its right to demand repayment, had failed to notify him of default, and had given assurances that it would allow him to trade out of the recession.
The judge accepted the bank’s account history and found Sullivan had not provided a credible basis to dispute the debt recorded in the loan account. She also found that the facility terms allowed early repayment to be demanded after a missed repayment, and that the bank had shown a default and sent a demand. Correspondence between the parties led her to conclude Sullivan knew of the default; she found his evidence did not establish an arguable basis for preventing enforcement through estoppel.
The judgment records that the bank said net proceeds of €3,330,879.78 from a receivership sale, together with €115,825.10 in net rental income, had been applied against the facilities. The bank said no balance remained on the Second Facility. Sullivan’s objections concerning that facility, including his allegation that his signature on a mortgage deed had been forged, were outside the application once the bank stopped pursuing it. The judge said any claim Sullivan might have concerning that facility would have to be pursued separately.
The court’s order was leave to enter judgment against Sullivan for €2,510,082.95, stated to be due as of 12 July 2016. The judgment does not record a determination of the bank’s claim against Kelly in this application.