Wednesday 21 February 2018

Businessman liable for €8.9m guarantee

Domhnal Slattery
Domhnal Slattery

Tim Healy

The chief executive of an aircraft leasing company is liable for more than US$10m (€8.9m)under a personal guarantee he gave for a loan, the Court of Appeal ruled.

Dómhnal Slattery of Avolon Airspace is liable to pay the money to Friends First following what the appeal court said was "sharp practice" and "chicanery" which led to a clause being "slipped" into a deed which, unknown to the lender, removed that liability.

The three-judge court found Mr Slattery is not entitled to €100,000 damages previously awarded by the High Court to him against Friends First over his right to confidentiality.

Mr Slattery, of Ailesbury Road, Ballsbridge, Dublin, had sued Friends First over the unsuccessful purchase of the St Regis Hotel in Washington DC. His private equity firm Claret Capital Ltd and Friends First were in a consortium which bought the hotel for $180m.

Mr Justice Sean Ryan said it was clear that Leon Atkins of Claret Capital had intended to mislead Friends First.

Irish Independent

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