The Court of Appeal has dismissed Pádraig Kelly and Bridget (otherwise Bridie) Kelly’s appeal against a High Court order granting Bank of Ireland summary judgment of €117,184.96.
Mr Justice McGovern delivered the judgment on 28 November 2019, with Justices Costello and Donnelly also listed on the court panel. The High Court order, made by Mr Justice Noonan on 27 July 2017, concerned guarantees the appellants signed for credit provided to Ballymitty Supply Stores Ltd, where both were directors. The company entered voluntary liquidation on 1 September 2010.
The appellants argued that the High Court should have heard their discovery motion before deciding the bank’s application for summary judgment. They sought bank statements and loan offers relating to the company’s borrowing since 1981. The Court of Appeal held that the High Court was entitled to decide first whether the case should proceed to a full hearing. It dismissed the appeal on this ground, stating that discovery was not the appropriate step before the issues had been defined.
The court also upheld the finding that the appellants had not established an arguable defence requiring a plenary hearing. Their claims included that the bank had forced the company into liquidation, obstructed property sales, overcharged interest and relied on invalid guarantees. The judgment said the claims about the property sales were unsupported assertions contradicted by documentary evidence, while the interest allegation lacked evidence showing how the charges were wrong or excessive.
The judgment records that the guarantees and related facility letters had been exhibited and signed. The appellants had also signed certificates stating that they did not wish to receive independent legal advice. The court concluded they could not simply repudiate the documents they had signed.
The court did not pursue allegations concerning the estate of Paddy Donnelly, which had not been included in the appeal grounds and was not argued on appeal. It found no error in the High Court’s decision to grant summary judgment and dismissed the appeal. The dismissal left the High Court order in place; the Court of Appeal did not make a new award in the judgment excerpt.