Ulster Bank mis-sold financial products, court hears
DEVELOPER David Agar says Ulster Bank mis-sold him a number of financial products in relation to interest rates on loans totalling €87m.
The Commercial Court heard the bank -- which denies the claims -- has counterclaimed against him for €47m over loans for one of his properties, the landmark Harcourt Building in Dublin.
The bank also claimed it was entitled to appoint receivers in connection with the building in circumstances concerning a number of alleged defaults by Mr Agar.
Yesterday, the court heard that the case arose out of a number of interest rate swap products on loans Mr Agar entered into with Ulster Bank, which he claims were recommended to him following a meeting in July 2007.
The products obliged the bank to pay him a dividend in the event of interest rates increasing, but also obliged him to pay the bank a dividend should interest rates fall.
Interest rates subsequently fell and, as a result, the bank sought the extra dividend payments. However, Mr Agar claims the effect of these products were not explained to him by the bank.
The bank had opposed the action, and denies that it gave any advice to Mr Agar or that it had made any misrepresentations to him.
In its counterclaim, the bank is seeking the judgments against Mr Agar of €47.8m for the term loan advance to purchase the share of the Harcourt building, plus an additional €5.3m for monies due under the interest rate swap agreements.
Mr Agar, of Brighton Road, Foxrock, is seeking a declaration from the court that a total of five financial products purportedly entered into between the developer and the bank be rescinded.
The case before Mr Justice Peter Charleton continues and is expected to last several weeks.