Court finds for Blackrock Clinic founder on loan figure
Published 06/02/2016 | 02:30
A SHAREHOLDER in Dublin's Blackrock Clinic is entitled to an order that he need pay €16.9m, rather than nearly €20m, to redeem a loan he took out to invest in the facility, the Commercial Court ruled.
Joseph Sheehan, a consultant surgeon based in the US and one of the clinic's founders, claims a company controlled by businessman Larry Goodman, which bought the loan from IBRC, engineered a situation where he is not receiving dividends which he needs to pay off the loan.
The full case is yet to be heard but yesterday Mr Justice Robert Haughton made rulings in relation to a number of matters.
These matters included how much Mr Sheehan would pay the Goodman company, called Breccia, if he was to redeem the loan.
He also ruled, in a separate case taken by another clinic shareholder, John Flynn, and a company he is director of, Benray Ltd, that the redemption figure in relation to their loan was €9.3m and not the €11m sought by Breccia.
The judge found Breccia could, in accordance with the original 2006 loan contracts, which were with the former Anglo Irish Bank, claim the higher redemption figures in both cases.
However, he found that part of Breccia's redemption figure contained an unlawful penalty. This related to a 4pc interest surcharge, where there is default on the loans, of more than twice the normal rate.
In Mr Sheehan's case, that is a total of around €3m.
He said Breccia was prevented by previous actions or determinations from claiming all or part of its actual redemption figures upto June 19, 2015.
However, from then on, it is entitled to claim it on account balances, he said.