The High Court granted Danske Bank summary judgment for €752,581.53 against the second defendant in a 2015 dispute over a loan used to buy land in Waterford.
Mr Justice McDermott said the defendant had not shown a fair or reasonable probability of a real defence that would justify sending the claim to a plenary hearing. The ruling addressed the bank’s application for summary judgment against that defendant; the judgment does not describe a trial of the underlying dispute.
The bank, then known as National Irish Bank, had advanced €615,500 in 2006 to fund the purchase of 0.74 hectares at Cristendum, Fairybank. The three defendants signed the facility acceptance and drew down the money. The loan was due for repayment by September 2008. The bank said payments were not made and demanded the outstanding balance in 2013. Its claim also included €40,056.76 on a business current account held by the three defendants.
The second defendant argued that he had signed for a company, International Property and Investments Ltd, rather than personally. The judge found no company resolution, company-account drawdown or other supporting evidence, and said the documents and dealings with the bank indicated that the defendant acted personally. He rejected that proposed defence.
The defendant also challenged the receiver’s appointment, made five days after a November 2013 demand letter sought payment within seven days. The judge said that issue did not provide an arguable defence to the bank’s claim for the debt, and noted that the defendant could have pursued a separate challenge to the receiver or the receiver’s actions.
The final proposed defence was promissory estoppel. The defendant said the bank had agreed to “park” the property for five to seven years while the market improved, with interest no longer accruing. The bank disputed that any such agreement had been made and said it had sought a viability report before later advising that the property should be sold. The judge found no documentary record defining the alleged standstill or its terms, and no cogent evidence supporting the claimed agreement.
The property was sold through the receivership in June 2014 for €37,237.51, after about €10,000 in receiver’s fees, according to the judgment. The judge said the bank had credited the net sale proceeds against the debt. He concluded that none of the proposed grounds amounted to an arguable defence and granted judgment for the amount claimed.