Business Irish

Sunday 26 February 2017

Judge slams 'sloppy' Anglo actions

Tim Healy

A JUDGE has criticised the "sloppy" and "careless" manner in which legal proceedings are being brought by various banks in their efforts to recover millions in unpaid property loans.

Mr Justice Peter Kelly, who manages the Commercial Court list, noted that, in one case yesterday by Anglo Irish Bank, it had sued for €3m when the sum involved was actually €9m.

The judge said an error of €6m was suggestive of carelessness and there was "a lot of that" in High Court actions brought by banks. If a claim was for €9m, that should be the amount specified in the summons, he said.

Anglo can't spell "principal" either, the judge remarked, referring to a document where it was mis-spelt as the "principle" sum advanced.

However, that error was "not fatal", he added.

The judge had, in another recent case, referred to the "sloppy" manner in which proceedings by Allied Irish Banks were brought, arising from unpaid loans of some €550m to companies in the Zoe Developments group.

The judge was yesterday dealing with proceedings by Anglo against Michael McKenna, of Killahan, Abbeydorney, Co Kerry in which the bank was seeking summary judgment for €9.3m over loans to Mr McKenna himself, and also arising from his alleged guarantee of loans made to a company, Moormac Developments Ltd.

The bank claimed Mr McKenna had provided guarantees over loans to Moormac and €3.1m remained unpaid since June. It also claimed Mr McKenna had failed to repay a loan of €5.9m advanced to him personally in August 2008. It alleged some €9.3m was now due.

It also claimed it had made extensive efforts to solve the issues through negotiations.

Counsel for Mr McKenna argued there remained an issue whether the proceedings could be brought without the prior approval of NAMA.

The judge directed that the summary judgment application will be heard in December.

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business