Davy in court over alleged €1.2m debt

STOCKBROKING FIRM J E Davy is pursuing a Dublin businessman for about €1.2 million allegedly owed under a shareholding account.

Rossa Fanning, for Davy, told Mr Justice Peter Kelly yesterday that the firm had only brought summary judgment proceedings against Tom Jones, Nutley Avenue, Donnybrook, Dublin, as “a last resort” after he had fobbed the firm off several times by claiming he would put it in funds but had always failed to so.

Mr Jones had last November given Davy a cheque for €1.2 million which was dishonoured, Mr Fanning said. He had proven “deliberately evasive” and had hung up when a summons server rang him on his mobile phone.

Martin Hayden SC, for Mr Jones, objected to the case being transferred to the Commercial Court on grounds including that if the shares at issue were sold, the sum then due would fall under the €1 million threshold of the Commercial Court.

Mr Hayden said Mr Jones had understood the €1.2 million cheque was not dishonoured but rather “countermanded” and said the cheque was required by Davy to satisfy the regulator.

If the case was admitted, Mr Hayden said he wanted an opportunity to put matters on affidavit. His client had given Davy about €2 million in 2009 and much of that was “lost”. There was an issue about advice given by Davy, including advice last year to buy shares in Bank of Ireland.

Mr Fanning said that while Davy could forfeit shares of Mr Jones, his liability was to pay for his shares and that remained. If Davy secured judgment against him, it would give credit for the sale of shares.

Mr Justice Kelly said there was no substance to the arguments made to prevent transfer of the case. The fact that Davy had an ability to sell shares did not dilute its entitlement to recover the sums due, he said.

While there was also some delay in the case coming to court, this complaint had to be seen in circumstances where the court had never seen a creditor go to such pains to try and persuade a person to pay. The firm was unwilling to sue a client and was only doing so in the “extraordinary” circumstances here, he said.

The judge said the “bones of a defence” had been outlined and that should be set out on affidavit. He listed the summary judgment application for June 24th.