Shopkeeper and developer seeks State protection from Zurich Bank

A MONAGHAN shopkeeper has brought a court action seeking the State’s protection from a bank which is seeking to enforce a €32 million judgment granted against him and which has also taken bankruptcy proceedings against him.

Jim McConnon, Main Street, Castleblayney, is seeking orders to stop Zurich Bank Ireland enforcing the €32 million judgment and requiring the Garda Commissioner to launch an investigation into the “modus operandi” of the bank. He also wants orders directing a judicial inquiry into the alleged “unlawful operation” of the bank.

The bank claims the action is “bizarre”, an abuse of process, bound to fail and amounts to an effort to relitigate issues already decided by the courts in favour of the bank when it secured summary judgment orders against Mr McConnon last March.

The bank applied this week to have the proceedings fast-tracked by the Commercial Court. The bank, the State and Garda Commissioner all intend to bring preliminary motions aimed at having the case struck out.

Mr Justice Peter Kelly, while agreeing to transfer the case, said he was mindful Mr McConnon is representing himself and is involved in two other sets of proceedings and the court would afford him time and whatever assistance it could.

The others are bankruptcy proceedings by the bank against Mr McConnon, and his own appeal to the Supreme Court against the Commercial Court’s decision granting the bank €32 million judgment against him over unpaid loans made in 2007 to develop a shopping centre in Castleblayney.

The bank last year appointed a receiver over the centre, now valued €1 million to €2 million.

Mr Justice Kelly, noting Mr McConnon has applied for legal aid, said the Commercial Court registrar would write to the Legal Aid Board in Co Monaghan asking for an early decision on the application for aid. The judge also directed Mr McConnon to deliver a statement of claim in four weeks and adjourned the case for mention next month.

Earlier, Mr McConnon told the judge he is a “reluctant” litigant but had brought the proceedings for very valid reasons and as a result of information he only recently came into possession of which he believed should have been before the courts in the judgment proceedings. He wanted an adjournment to seek legal representation.

When the judge said Mr McConnon appeared to have the mistaken view that the issuing by him of these proceedings afforded him court protection, Mr McConnon said he had asked the bank “not to go the bankruptcy route” but it seemed “gung ho” about that and he wanted the broader issues addressed.

Mr McConnon has brought his proceedings against the Taoiseach, Minister for Justice, Ireland, the Attorney General, the Garda Commissioner and Zurich Bank Ireland. In his claim, he is seeking the protection of the State under provisions of the Constitution obliging the State to vindicate the rights of citizens to life, property and good name.