Sisk claims Anglo agreed to pay builder's liabilities for €10 fee
Published 13/04/2010 | 05:00
ANGLO Irish Bank has been accused of agreeing to pay a building company's multi-million euro liabilities on a major construction project on the basis of a paltry €10 fee.
Construction giant Sisk claims that on the basis of it paying the €10 fee, the bank agreed to pay the liabilities to Sisk of another building company, which stand at €3.2m, the Commercial Court heard.
John Sisk & Sons Ltd is suing Anglo and the other company, Fordmount Developments (Savoy) Ltd (FDSL), for €3.2m. Admitting the case to the Commercial Court yesterday, Mr Justice Peter Kelly observed it was alleged Anglo had agreed in May 2006, for a fee of €10 from Sisk, to ensure all obligations of Fordmount to Sisk would be met in relation to construction works for a major development in Limerick.
Maurice Collins, for Anglo, said the bank would be fully defending the case.
In its action, Sisk alleges breach of contract by FDSL and Anglo arising from agreements relating to the construction of a hotel, apartments and retail units in Limerick called the 'Savoy Project'.
Sisk claims it and Anglo, in May 2006, entered into a collateral agreement under which Sisk gave Anglo certain warranties in relation to the construction works in consideration of a fee of €10.
Sisk claims the agreement provided Anglo would ensure all monies were paid to FDSL so as to enable FDSL to meet its contractual obligations to Sisk under the main contract.
As FDSL had failed to meet its contractual obligations to Sisk, Anglo had breached its obligations under the collateral agreement, Sisk claims.
Anglo had refused to accept any liability under that agreement, it added.