Wednesday 23 October 2019

Quinlan ordered to pay Bank of Scotland €6.5m

Financier Derek Quinlan was among a group of investors who paid €180m for the Bank of Ireland HQ in Baggot St, Dublin
Financier Derek Quinlan was among a group of investors who paid €180m for the Bank of Ireland HQ in Baggot St, Dublin

Aoife Finneran

DEVELOPER Derek Quinlan has been ordered to repay more than €6.5m to Bank of Scotland (BoS) arising from the €180m purchase of the Bank of Ireland headquarters at Baggot Street in Dublin.

A €180m loan was taken out by Mr Quinlan and other borrowers to buy the property in Dublin in 2006. The loan agreement included only a limited ability for the bank to recover the money and it has now taken action against eight borrowers for more than €25m.

Not defended

Mr Quinlan, with an address at Manfred Road, London, did not defend the claim against him and was not represented in court.

The case against the other borrowers has been adjourned until next February to allow them to file defences.

Three of those businessmen are now said to be living in London, but Irish addresses were provided for them in the court documents. They are: Patrick Shovlin, of Turnberry, Kerrymount Ave, Foxrock, Dublin; Patrick Fitzpatrick, of Dargle Lodge, Cookstown, Enniskerry, Co Wicklow; and Anthony Fitzpatrick, of Trethorpe, Brennanstown Road, Cabinteely, Dublin.

The bank is claiming summary judgment for €7.4m against Mr Shovlin and summary judgment for €3.7m each against Patrick Fitzpatrick and Anthony Fitzpatrick.

The bank has also sued Ronan O Caoimh, of Glencarrig House, Delgany, Co Wicklow, for €1.4m; Patrick Mooney, of Celbridge Road, Maynooth, Co Kildare, for €1.49m; and Peter Lavelle, of Croselis Square, St Margarets, Twickenham for €483,696.

The case arose from loans of some €180m issued by BoS, as agent for a syndicate of other lenders, to a number of borrowers in 2006 to buy the BoI premises.

Quinlan Private acted as the borrowers' agent for the purposes of the loan agreement.

The agreement provided that the bank's recourse to the borrowers was limited principally to the property, subject to stated exceptions.

The loan agreements also provided that if the value of the property was insufficient to meet the borrowing, the bank could not pursue the borrowers further.

Bank of Scotland claims the loan agreement allowed for certain recourse to the borrowers and their assets, notwithstanding the general limited recourse under the loan agreement.

It claims it is entitled to pursue each borrower's proportion of interest payable on the loan facilities and also to each borrower's recourse amount as identified by each borrower's agent, with the aggregate recourse sum being €25m.

Mr Justice Peter Kelly yesterday transferred the case to the Commercial Court.

Irish Independent

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