The High Court has granted Irish Life and Permanent plc, trading as Permanent TSB, summary judgment against Ronald Hudson and Miriam Hudson for €2,107,679.59 plus continuing interest over five mortgage loans.
In a judgment delivered on 13 January 2012, Mr Justice Sean Ryan said the bank had established its prima facie entitlement to judgment, which the defendants did not dispute. He found their proposed defences were “not credible” and entered judgment for the bank.
The case concerned loans taken out between 2006 and 2007 to refinance four existing rental properties and fund the purchase of two more. The defendants defaulted on payments. After the bank agreed to a revised payment schedule, that arrangement also fell into arrears. The bank demanded full repayment in May 2011.
Ronald Hudson’s affidavits alleged that Susan Croke, a mortgage broker, had represented that the loans were interest-only, non-recourse and secured only against the investment properties. He said the borrowers would not be personally liable if rental income or property values fell. He also alleged negligence and misrepresentation. The bank disputed that account, including whether Croke acted as its agent.
Accountant Anthony Fitzpatrick gave evidence that Croke had described a similar “walk away” arrangement to him. The judge found the account far-fetched and inconsistent with the signed loan documents and the defendants’ conduct. He noted the borrowers had signed separate offers witnessed by a solicitor, and that only four of the five loans had a three-year period during which principal repayments were not required.
The judge also pointed to the absence of any written record of the alleged special terms and to the fact that the defendants had not raised them during earlier correspondence with the bank about arrears. He said the defendants’ dealings with the bank and efforts to maintain repayments were inconsistent with their claim that the bank alone bore the investment risk.
The court applied the summary-judgment test: whether there was a fair or reasonable probability of a real or bona fide defence. It concluded there was not and ordered judgment for the bank. The judgment does not state a separate order concerning possession or sale of the properties.