The High Court has calculated damages recoverable by KBC Bank Ireland plc from BCM Hanby Wallace at €17,694,130.70, after resolving disputes about the value and valuation dates of two properties used as security. The judge said he would hear counsel if there was disagreement about the figures.
The damages hearing followed a substantive judgment delivered on 16 March 2012. The parties had agreed all aspects of the damages calculation except for the Rathmines Road property and land at Oilgate, County Wexford.
For 167 Rathmines Road Upper, the court fixed the value at €3.4 million as of June 2008. The judge said the 2005 Bannon Commercial valuation of €5.3 million relied on an incorrect and exaggerated turnover figure. However, he considered the €4.25 million purchase price in August 2005 and the property's development potential more persuasive than the €2.8 million valuation offered by Colliers International. Applying an adjustment for the movement in values to June 2008, he adopted €3.4 million.
The judge also considered the date for valuing the Oilgate property. The Bank's first legal charge was perfected on 15 February 2008, after Mr Kelly was registered as owner and the Bank lent him €181,243 to pay stamp duty. The defendant argued that the six-month period should run from the mortgage's execution on 13 November 2007. The court rejected that submission, finding the Bank had acted with reasonable speed and setting August 2008 as the valuation date.
For Oilgate, the judge preferred evidence that the land retained development value in August 2008, despite restrictions and a falling property market. He accepted Marcus Magnier's valuation of €2.25 million over Ronan Diamond's €290,000 agricultural-land valuation. The judge noted that Diamond had relied on incorrect information that there were no auction bids, while an auction record showed bids up to €2.8 million in 2006 before the land was sold to Mr Kelly for €3 million.
The court directed that the agreed damages schedule substitute €2.25 million for Oilgate and €3.4 million for Rathmines. On that basis, it calculated total damages of €17,694,130.70, subject to any disagreement counsel may raise.