Anglo fails to obtain orders for €84.4m

ANGLO IRISH Bank has failed to obtain summary judgment orders for €84.4 million against a developer after a High Court judge ruled yesterday Michael Daly had made out an arguable defence to the bank’s claim.

Mr Daly, North Circular Road, Limerick, is being sued for €84.4 million over unpaid loans of some €165 million to the Limerick-based Fordmount property group and two partnerships. He argued, among various claims, that he was assured by officials in Anglo that personal guarantees provided by him over loans were effectively “paper” guarantees and would never be called upon.

He also alleged he had “easy access” to senior figures in the bank, including Seán Fitzpatrick and David Drumm, and was actively encouraged in 2006 and 2007 to undertake massive property developments here and abroad with the assurance that hundreds of millions would be loaned by Anglo.

Yesterday, while stressing he was making no finding on the merits or otherwise of either the bank’s claim or Mr Daly’s defence, Mr Justice Peter Charleton ruled Mr Daly had made out an arguable defence and the matter would go to a full plenary hearing.

The judge said much of what Mr Daly had said relating to guarantees and other matters was inconsistent and he had to explain why, at a crucial point in early 2008, he had to submit a statement of his assets to the bank. Mr Daly had suggested it was indicated to him by Anglo that its rules about guarantees could be circumvented.

The court could not at this stage make an assessment of his credibility or take any view as to how either side had behaved, the judge said. Mr Daly had raised issues adequate to get him over the low threshold required to send the matter to a full hearing, he ruled.

He told Brian Kennedy, for Anglo, he expected the bank would make discovery of minutes of credit control committee meetings and other documents sought by Mr Daly.