Solicitor Gerald Kean sued by EBS over deeds linked to his ex-girlfriend
Solicitor Gerald Kean's alleged failure to return title deeds to a bank for two properties of his former girlfriend means the bank faces difficulties securing repayment of loans for €600,000, the High Court heard.
Those loans were made to former model Dolores Corcoran several years ago.
Sarah Hanratty of EBS/AIB said Mr Kean had returned the title deeds of a third property of Ms Corcoran's but not the title deeds of two other properties, one of which contained most equity.
The deeds were required over the refinancing of three of four loans made to Ms Corcoran by EBS between 2004 and 2006.
Because those title deeds are now with another financial institution, Permanent TSB, EBS cannot enforce its security for the fourth loan advanced by it to Ms Corcoran which remains unpaid, Ms Hanratty said.
Asked by Andrew Fitzpatrick SC, for EBS, why EBS had sued Mr Kean, she said it was because EBS has a considerable loan and most of Ms Corcoran's debt to it had not been refinanced.
The larger loan, for some €600,000, was not refinanced and EBS, due to not having the relevant title deeds, cannot enforce its security concerning the two properties - at Portnahully, Carrigeen, Waterford, and Hunter's Way, Williamstown, Waterford - she said.
The security for those properties was "a lot greater" than the security EBS holds over the third property at Henrietta Street, Waterford, she said.
EBS potentially has a borrower who cannot pay back the debt and would normally rely on the security but it cannot access that, she said.
EBS had a first legal mortgage over the two properties. EBS wanted Mr Kean to return the deeds so it has adequate security for the loan or to compensate for that security in some way.
She agreed with Richard Kean SC, for Gerald Kean, EBS has personal guarantees provided by Ms Corcoran and her father but said she understood EBS had to rely on the security for the property before it could act under that guarantee.
Mr Kean will continue his cross-examination of Ms Hanratty today.