The High Court has refused Thomas and Antoinette Darcy’s application to set aside a default judgment obtained by Allied Irish Banks plc for more than €17 million.
Mr Justice Sean Ryan ruled on 20 July 2012 that the defendants had not put forward a defence capable of justifying the judgment being reopened. He also found that the explanations for failing to respond to the original claim and for the delay in bringing the application were insufficient.
The bank obtained judgment in the Central Office on 16 February 2011 after neither defendant entered an appearance in the summary proceedings. The Darcys applied to set it aside on 12 April 2012. Thomas Darcy represented himself and spoke on behalf of his wife.
Darcy argued that the loan contracts were flawed, one-sided or unconscionable, and alleged misrepresentation, oppressive conduct and regulatory breaches by the bank. He also said the bank had advanced money before the facility documents were in place and challenged a €35,000 difference between the amount in the bank’s demand letter and the amount claimed in the summons.
The judge said the allegations were not supported by evidence establishing a defence. He noted, among other points, that the claim concerned money lent and not repaid, and that the difference between the demand and summons amounts did not invalidate the proceedings. He said the bank’s separate possession proceedings concerning properties used as security were distinct: setting aside the money judgment would not affect the possession orders made in those proceedings.
Darcy said he had not defended the original claim because he was depressed after his business collapsed, the family home was destroyed by fire and family members died. The judge expressed sympathy but said the circumstances, without evidence demonstrating incapacity, did not sufficiently explain the failure to respond. He also found the delay difficult to explain because the Darcys had been active in the separate possession proceedings during that period.
The court refused the application to set aside the default judgment. The judgment did not determine the separate possession proceedings or alter the orders made in them.