The High Court granted Allied Irish Banks plc judgment on two accounts in its claim against John Tobin, for a total of €499,963.01, and referred the balance of the bank’s claim to a plenary hearing.
In a judgment delivered on 17 January 2013, Mr Justice Ryan considered the bank’s application for summary judgment on six accounts, which it said totalled about €4.2 million. The question at this stage was whether Mr Tobin had shown a rational and credible basis of defence that might succeed, not whether he had established that he owed nothing.
Three accounts arose from facilities offered in December 2008 for €2.751 million, €780,000 and €170,000. Their repayment terms provided for interest-only periods followed by a review and, in some cases, refinancing. The bank later wrote that the facilities would expire on 28 February 2010, when outstanding amounts would become repayable in full. Its solicitors demanded payment in February 2011.
Mr Tobin’s counsel argued that the repayment terms were ineffective agreements to reach agreement, that the money was not yet due and that the bank’s later letter could not validly set a repayment deadline. The bank argued that its letter fixed that deadline; it also relied on general conditions under which facilities were payable on demand where no effective specific repayment term applied.
Justice Ryan found that Mr Tobin could argue that the three loans had not become repayable in full at the end of the interest-only periods, and that the bank was not entitled to demand payment when it did. The terms appeared to envisage a further arrangement, but did not specify what would happen if the parties could not agree. The judge said that question did not need to be resolved on the summary application. Oral evidence might also be relevant, though he made no finding that it would be required. Summary judgment was refused on those three accounts, with the claims left for plenary hearing.
A separate €200,000 loan account was also sent to plenary hearing. Mr Tobin said in an affidavit that he had cleared it in full. The judge found that this statement, together with particulars of payment, raised a defence sufficient to prevent judgment on a summary application. The bank’s affidavit listed outstanding amounts on five accounts but omitted that account, which the judge described as implicit confirmation of repayment.
The court granted judgment on two overdraft accounts. For one, Mr Tobin acknowledged indebtedness but said he could not check the amount claimed because the bank had not particularised its calculations. The judge found that the bank’s account statements showed the balance and interest, and that Mr Tobin had raised no specific query or possible defence. No defence was put forward for the other account. The judge ordered judgment for the amounts due on those accounts, stated together as €499,963.01, and referred the rest of the claim to plenary hearing.