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Daly gets go-ahead to challenge NAMA control over properties

THE High Court has given developer David Daly the go-ahead for a legal challenge aimed at trying to take back control of a string of properties after NAMA-appointed receivers took control of the assets.

Albany Homes boss Mr Daly and his daughter Joanne and son Paul are trying to reverse NAMA's appointment of receivers over the properties in Ireland and Britain.

The properties were pledged as security for €457m of loans.

Yesterday in the High Court, Mr Justice Roderick Murphy agreed to an application by Michael Cush, representing the Dalys, to have their case heard on Thursday.

James Doherty, for NAMA, consented to the application. Both sides will exchange affidavits before the case is heard.

NAMA appointed the receivers after taking over personal loans of about €457m held by Mr Daly and his children with Allied Irish Banks. The receiverships are not related to the Albany Homes business or related companies.

In an affidavit, Mr Daly said he was seeking to restrain NAMA from taking any steps to seek repayment of loans or from enforcing any obligations related to those facilities, including the appointment of a receiver.

On Thursday, lawyers for the Daly family are expected to look for a further court hearing to apply for an application to stop NAMA taking any fresh action -- such as selling property -- until the final outcome of the case is decided.


The Dalys have taken the case against NAMA, the State and AIB, which originally advanced the loans.

NAMA demanded repayment of the loans last Wednesday and gave just a day to settle the debt, according to lawyers for the Dalys. Lawyers for NAMA said the toxic debt agency had no current intention to sell any of the properties, and would give 24-hours notice if that situation changed.

The Dalys are seeking a declaration that the loans, which were transferred to NAMA last year, are not repayable on demand. They are claiming NAMA exceeded its rights by seeking immediate repayment of the loans, which they claim are being fully serviced.

In addition, they say some provisions of the law that set up NAMA are invalid, unconstitutional and in breach of the State's obligations under the European Convention on Human Rights. Mr Daly said the loans were fully performing with interest being repaid.

Enforcement of the loans would have "disastrous consequences" for the plaintiffs, who were not responsible for AIB's difficulties, he said.

On Friday, NAMA appointed Jim Hamilton of BDO Simpson Xavier as receiver over a number of Dublin properties, including a building on St Stephen's Green and Airside Business Park near Swords. In Britain, NAMA appointed Shay Bannon and Sarah Rayment of BDO as receivers to properties including two on Bond Street, one of which houses Louis Vuitton.

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