BoSI gets €214m judgment against hotelier Mansfield
Hotelier Jim Mansfield has been dealt another major blow after Bank of Scotland (Ireland) secured a €214m judgment against him.
The hotelier and developer wasn't present to hear the ruling yesterday morning, but Justice Peter Kelly said in the Commercial Court that Mr Mansfield had failed to make any arguable defence to claims made by the bank for the repayment of loans.
Mr Mansfield (72) had given personal guarantees for loans made to three of his companies -- HSS Developments, Parke Associates and Jeffel.
He'd alleged that Bank of Scotland hadn't honoured an undertaking to provide his leisure group with between €17m and €20m in funding that was earmarked to complete the development of the Citywest Convention Centre in Saggart, Co Dublin.
Mr Mansfield, who is now suffering from a severe neurological condition, insisted that the absence of the additional funding meant that the overall development of the scheme had been delayed. That caused subsequent issues with cashflow, which precipitated the collapse of his Mansfield group.
It was alleged that Mark Duffy, then CEO of the bank, had assured Mr Mansfield in early August 2008 that funding would be given and there was an agreement that between €17 to €20m would be made available for the construction of the convention centre.
Last month, counsel for the bank told the court that Mr Mansfield's claim that the lack of additional funding prompted the collapse of his "magnificent empire" was completely untrue.
The court was told at the time that most of the loans attached to the Mansfield Group had degenerated into "serious and repeated default".
Mr Mansfield's HSS firm was placed in receivership by Bank of Scotland in summer last year, as was Jeffel. HSS trades as Citywest Hotel.
Mr Mansfield had used the three companies related to yesterday's ruling to buy land in west Dublin to develop a hotel, conference centre, residential units, a golf course and offices.
The judgment against Mr Mansfield, who wasn't contactable last night, comes two months after the National Asset Management Agency secured a €74m judgment against him.
Mr Justice Kelly also refused an application made by Mr Mansfield's legal team yesterday to put a stay on the Bank of Scotland judgment pending a potential appeal to the Supreme Court.