€280m orders sought against Mansfield

A HOTELIER who has what was described at the Commercial Court yesterday as an incurable neurological illness is being pursued by Bank of Scotland and Nama for summary judgment orders totalling €280 million.

In what Mr Justice Peter Kelly noted as probably the biggest ever summary judgment application brought here arising from a personal guarantee, Bank of Scotland is seeking orders for €206 million against James Mansfield snr arising from debts of his companies.

Nama, in a separate case, is seeking €74 million summary judgment orders also arising from Mr Mansfield’s guarantees over loans made by Irish Nationwide Building Society to two companies.

Efforts by Mr Mansfield, Tasaggart House, Saggart, Co Dublin, and others to persuade a Saudi Arabian prince and a US business to invest in the Citywest enterprise were unsuccessful, the court also heard. The Mansfield group had failed to deliver any of the items set out in a strategic plan provided by it to Bank of Scotland, it was claimed.

Mr Justice Kelly yesterday transferred both sets of proceedings to the court, which fast-tracks commercial disputes, and listed the Bank of Scotland summary judgment application for November 10th. Given that Mr Mansfield was suffering from a neurological condition said to be incurable, it was in his interest the case be heard speedily, the judge said.

He allowed time to Mr Mansfield’s side to outline on affidavit what was described as a partial defence in the Nama proceedings and adjourned that matter for two weeks.

Patrick Leonard, for Mr Mansfield, said he was not opposing transfer of the Nama case but wanted time to consider a partial defence to a small portion of the claim. He was concerned whether Palmerston Stud would be sold for less than an offer made earlier this year but not accepted by the receiver, Mr Leonard said.

He also indicated he would seek a stay on any judgment order which might be granted in the Nama proceedings so as to allow certain assets to be sold.

Earlier, Mr Leonard had opposed the Bank of Scotland case being fast-tracked on grounds of alleged delay by the bank in bringing the proceedings and because of his client’s health problems. The judge rejected those arguments and found no culpable delay on the bank’s part.

The judge also noted the medical reports stated that Mr Mansfield had a number of medical conditions, the most serious being multiple system atrophy which, he noted, a neurologist had said was incurable. An estimated life-span had been provided and, because this condition was deteriorating, the case should be got on as soon as possible.

After the judge transferred the case, Mr Leonard said Mr Mansfield was currently able to give instructions but not on a daily basis as “some days are better than others”.

The case relates to loans provided by Bank of Scotland to HSS, Jeffel and Park Associates Ltd – the Mansfield group – of which Mr Mansfield is a director. The loans were advanced for purchase of lands and for development of a conference office, a golf course, residential units and a hotel.

Mr Leonard said business was conducted between Mr Mansfield and the bank via verbal agreements on funding, with the “paperwork” put in place later. He said a €28 million loan was sought for a convention centre at the hotel but Bank of Scotland decided it was not prepared to finance that. Had that money been paid out, the business would “not have collapsed” as it had and Mr Mansfield would not be facing judgment.

After Bank of Scotland appointed Martin Ferris as receiver of HSS, Mr Mansfield was involved in negotiations with a Saudi Arabian prince concerning setting up the City West Institute, an English language school for up to 1,000 Middle Eastern students.