The High Court has granted Promontoria (GEM) DAC summary judgment for a total of €65,527,155.65 against Stephen Murphy and Margaret Murphy, finding they had no fair or reasonable probability of a bona fide defence. The judgment was delivered by Mr Justice Twomey on 30 May 2019 in the Commercial Court.
The claims comprised €48,319,840.92 against Mr Murphy and €17,207,314.73 against Mrs Murphy. The judgment says the borrowings originated in 18 Bank of Ireland facility letters issued between October 2002 and May 2010 for property acquisition and development in Ireland. National Asset Loan Management DAC later acquired the facilities and, under a settlement agreement dated 24 October 2016, the Murphys agreed to make payments in return for specified concessions, including a proposed release of the charge over their family home if they complied with the agreement. NALM transferred its rights, security and related rights to Promontoria in January 2017.
The court said the Murphys’ breach of the settlement agreement was undisputed. It found they had failed to pay three sums totalling about €2.1m by 24 January 2017. Mr Murphy said the money was held by his solicitor and that he did not know to whom it should be paid. The judge rejected that as a defence, noting that a July 2018 letter had notified them of the breach and that no payment followed.
Mr Murphy also challenged the evidence of Alastair Gracey, a senior asset manager at loan servicer Link ASI Limited, because he was not employed by Promontoria. The court held his evidence admissible, given his role in administering the loan accounts and the defendants’ admissions. It also rejected objections concerning descriptions in affidavits and the jurat of a second affidavit, treating the alleged defects as irrelevant or capable of being disregarded.
The judge found the defendants had provided no evidence identifying an error in the amount claimed and no concrete reason for requiring an unredacted transfer deed. Their request to cross-examine Mr Gracey also failed because no factual dispute was identified that cross-examination could resolve.
The court refused Mr Murphy’s motions to strike out or dismiss the proceedings for failing to disclose a cause of action and for want of prosecution. It found no inordinate or inexcusable delay. The judgment grants summary judgment for the full sums claimed; it does not send the case to a plenary hearing.