The High Court has refused Oliver Rooney’s application to set aside a judgment entered for Allied Irish Banks plc after he failed to enter an appearance in proceedings over a guarantee for DBR Construction Ltd.’s debts.
The judgment, delivered by Mr Justice Eagar on 28 March 2017, concerns a default judgment entered in the High Court Central Office on 19 May 2015. The source records the bank’s claim as €453,292.74, arising from a guarantee dated 4 September 2009 that was capped at €692,000. A bank affidavit referred to a judgment sum of €444,018.14.
Rooney argued that he did not recall signing the guarantee and had not received a complete, legible copy before the proceedings. He also said the guarantee, if it existed, was an unconscionable bargain because he had no involvement in or benefit from the company. He relied on information from his brother, David Rooney, that the company disputed the debt and that the bank had agreed not to pursue the balance if property in Louth Village was sold.
The bank disputed those claims. It said the guarantee existed and had been signed, and that the proceeds from property sales had been credited to the company’s loan account. The bank denied agreeing to waive the remaining debt. It said it had instead sought financial information from the guarantors and discussed reviewing the debt after the security properties were sold.
The court applied the test for setting aside a default judgment: the applicant had to show a possible defence with a reasonable prospect of success. It noted that Rooney said he had overlooked service of the summons and failed to enter an appearance in time.
The judge was satisfied that Rooney had signed the guarantee and had not raised a signature dispute when the bank later corresponded with him. The court also found no reasonable prospect of success in the argument that the guarantee was unenforceable because his brother owned almost all of the company; Rooney had signed knowing that fact.
On the debt, the judgment records credits of €118,500 for each of two properties at St. Mochta’s Corner, entered in June and July 2010. The court was satisfied that the sale proceeds were credited to the company account.
The court declined to set aside the judgment, finding no possible defence with a reasonable prospect of success. The decision addresses only Rooney’s application to reopen the default judgment; it does not determine a new claim or make a separate order about the disputed balance.