IBRC sues brother of former Anglo chief for €230k
Published 09/04/2013 | 05:00
A BROTHER of former Anglo Irish Bank CEO David Drumm is being sued for more than €230,000 by the bank's successor over alleged non-payment of loans and hire purchase agreements.
Irish Bank Resolution Corporation (IBRC), which is now in special liquidation, is seeking summary judgment for €234,663.
It claims that Ken Drumm, a businessman living and working in the UK, allegedly failed to make repayments on five separate loan and hire-purchase agreements that he or his former company entered into with Anglo between 2006 and 2008.
The agreements included finance for the hire purchase of vehicles, including a Landrover and a BMW, as well as to enable him to buy shares in Anglo, the High Court heard. Mr Drumm opposes IBRC's summary judgment application and says he should be given a full hearing in which he could bring evidence to support his dispute over the amount claimed.
He says the bank overcharged him in interest affecting at least two of the agreements, and that there is no basis for the claim that he is personally liable in relation to the loan agreement to purchase Anglo shares. He also says the bank was in breach of consumer credit legislation by failing to provide him with copies of the agreements.
The case, which was adjourned yesterday before Mr Justice Daniel Herbert, resumes on May 7.
Stephen Dowling, counsel for IBRC, told the judge the first agreement – in January 2006 – related to the hire purchase of a BMW car for Mr Drumm's company, Shrewsbury Developments Ltd, which has since been struck off the Companies Register.
Mr Drumm signed a personal indemnity for the debt that amounted to €91,190 when it fell into arrears in January 2010, Mr Dowling said. He also defaulted on two other hire-purchase agreements for Mercedes and Volkswagen cars, which he allegedly sold without the consent of the bank – and the proceeds of which Mr Drumm failed to pass on to the bank, counsel said.
There were two other loans advanced to him, including €50,500 he used to buy €75,000 in Anglo shares, of which €25,000 was from his own funds.
The bank says he is personally liable for this debt – but he claims the agreement was that there would be no personal recourse to him. Mr Drumm claims this is because security for the loan was in the shares themselves, which Anglo retained control over in a nominee account.
IBRC denies Mr Drumm's claims in relation to alleged interest overcharging and says it had checked all his accounts to verify this. It also says he was always meant to be liable for the share-purchase loan regardless of what happened to the value of the shares.