Ivor Callely consents to €11m judgment
FORMER Fianna Fail Senator Ivor Callely has consented to a €11m court judgment being entered against him.
The Irish branch of Investec Bank plc had brought High Court proceedings against Mr Callely, with an address at St Lawrence's Road, Clontarf, Dublin, arising from a March 2007 loan agreement under which some €9.85m was advanced to him and three other borrowers - John O'Dolan, Denis Kenny and Daragh Sharkey to purchase property.
The bank claimed all four borrowers were jointly and severally liable to repay it under that agreement.
The case against the former senator was listed before Mr Justice Kevin Cross in the Hight Court earlier today.
Mr Justice Cross was told by Ciaran Lewis BL, for the bank, that Mr Callely was consenting to judgment for a €11m sum and the bank was agreeable to that.
Mr Callely was not in court.
In its action, the bank claimed the loan agreement provided that the sum advanced, plus accrued interest, was to be repaid a year after the March 30, 2007, date of drawdown of the loan.
The bank said it later agreed to extend the final repayment date to June 30, 2008, and it brought the proceedings after making several demands for repayment.
It claimed the sum due, with interest, was some €11.6m but the sum Mr Callely agreed to was €11m, plus costs.
In response to the bank's claim, Mr Callely had argued, among other claims, the loan agreement contemplated the execution by him of a guarantee and indemnity with the clear implication his liability under the loan was to be under that guarantee and indemnity.
In those circumstances, he argued the case was improperly constituted.
Without prejudice to that claim, he also argued, unknown to him and without his consent, the bank had paid a €500,000 sum to one of his co-borrowers, John O'Dolan, now deceased, which was then used to pay off Mr O'Dolan's personal debts with the bank.
Mr Callely had also made a number of claims as to how a bank-appointed receiver had managed the property involved and said he intended to take proceedings in that regard.
The bank argued Mr Callely had no defence to its claim and also said he was incorrect in relation to his allegations about a payment to Mr O'Dolan.
There was no payment of €500,000 from the loan account to Mr O'Dolan and Mr Callely was referring to a payment into a separate account under a different name in relation to which Mr Callely had no interest or liability whatsoever, it said.