Decision that NIB entitled to €37m is overturned
THE Supreme Court has overturned a decision that National Irish Bank (NIB) was entitled to summary judgment for €37m over loans for a plan to build hundreds of houses.
NIB had got a High Court order giving it judgment for the money against Durkan New Homes (DNH), a couple and another company over failure to repay loans given for the estate in Cabinteely, in south Dublin.
The three-judge Supreme Court yesterday ruled DNH, with offices at Ranelagh, Dublin; Don and Marian Casey, of Woodbrook, Beech Park, Cabinteely, and Tullycross Developments Ltd had made out an arguable defence to the NIB claim. The defendants were entitled, "as a matter of justice" to a full plenary hearing, the court said. The case will now go back to the High Court for such a hearing. NIB claimed the effect of cross-guarantees meant all four defendants had a liability for the €37m sum.
Yesterday, Ms Justice Denham said issues raised relating to the construction of loan documents and whether the extent of bank hours had any application were not simple and clear.
She found the defendants had an arguable defence on the basis of their claims that a proper construction of the loan documents meant the valuation, because it was received after close of business on the repayment date, was outside the term of the loan. NIB's right to repayment under the agreements was limited to property specified in the agreements, she said.