Sunday 17 December 2017

Decision reserved in David Drumm brother's case

Tim Healy

A BROTHER of former Anglo Irish Bank CEO David Drumm claims he should be given the opportunity to get the documentation he needs to properly defend a bid by the bank's successor to obtain summary judgment against him for €234,000.

Ken Drumm's debt to Irish Bank Resolution Corporation (IBRC) arises over alleged non-payment of loans and hire purchase agreements.


Mr Drumm, a businessman currently living and working in the UK, allegedly failed to make repayments on five separate loan and hire purchase agreements he or his former company, Shrewsbury Developments Ltd, entered into with Anglo between 2006 and 2008.


The agreements included finance for the hire purchase of vehicles, including a Landrover and a BMW, as well €50,500 towards the purchase by him of €75,000 in Anglo shares, the High Court heard.


Mr Drumm signed an indemnity for Shrewsbury Developments making him personally liable for a debt  of €91,190 for the Landover and BMW, it is claimed.  He defaulted on two other hire purchase agreements for Mercedes and Volkswagen cars, it is also claimed.


Mr Drumm opposes IBRC's summary judgment application and says he should be given a full hearing of the judgment application against him in the High Court where he could bring evidence to support his dispute over the amount claimed.


He claims the bank overcharged him for interest affecting at least two of the agreements and he also says there is no basis for its claim he is personally liable in relation to the loan agreement to purchase Anglo shares.


He claims the bank was in breach of consumer credit legislation by failing to provide him with copies of the agreements.


Today, Mr Drumm, who represented himself, told the High Court his "hands were tied" in his ability to defend the judgment because he could not get the documents he requires to do so.  If he was granted a full hearing, he would be entitled to full discovery of those documents, he said.


Stephen Dowling BL, for IBRC,  said there was no basis for Mr Drumm's claims in relation to interest overcharging as the bank had checked all his accounts to verify this.


The share-purchase loan was never a non-personal recourse loan and Mr Drumm was always meant to be liable regardless of what happened to the value of the shares, counsel said.  Much of Mr Drumm's arguments had only been put forward once legal proceedings had issued against him, he said.


Mr Justice Daniel Herbert reserved his decision.

Online Editors

Promoted Links

Today's news headlines, directly to your inbox every morning.

Promoted Links

Editor's Choice

Also in Irish News