The High Court held that Matt Lynch was liable to Crohan O’Shea, Sean Fitzpatrick and O’Shea Homes Limited for €94,814.41 under a guarantee concerning the obligations of Lynch Freight (Kilmallock) Limited.
In a judgment delivered on 19 March 2009, Mr Justice de Valera said the plaintiffs contended that an instrument dated 3 April 1998 guaranteed that Lynch Freight (Kilmallock) Limited would, among other things, observe covenants in a lease between the plaintiffs and the defendant.
The original guarantee was produced in court on 17 January 2008 and formally proved. The defendant submitted that its wording was ambiguous and that the guarantee was limited to the third-named plaintiff. The judge rejected both arguments.
The judge also rejected the defendant’s argument that a failure to make a demand for arrears defeated the claim. He said the guarantee’s wording, including the phrase “whether any demand [for arrears] shall have been made or not”, made clear that the demand issue failed.
The court found the guarantee effective and held that the plaintiffs were entitled to recover €94,814.41 from the defendant under it. The judgment resolved this associated matter; the source does not state whether a separate formal order was made in this case.
The judgment referred to an associated case involving the same plaintiffs and Lynch Freight (Kilmallock) Limited. In that matter, the judge said he was satisfied the formal proofs were in order and that the defendant was indebted to the plaintiffs for €98,814.41. That amount relates to the associated matter, not the guarantee claim decided here.