AIB secures €15.5m judgment

Allied Irish Banks has secured €15.5 million judgment orders against former Fianna Fáil councillor Gerard Killally and former Co Offaly GAA football manager Richie Connor.

The orders relate to unpaid loans relating to land deals in Co Offaly, including deals where both men admitted making secret profits.

AIB sought the orders at the Commercial Court today against Mr Killally, Mr Connor and two other men - Declan Guing, Carrick Road, Edenderry, and Frank Lawlor, Clonmullen Lodge, Edenderry.

Mr Justice Peter Kelly was told Mr Killally was consenting to the judgment order while Mr Connor, in a letter, also offered no opposition. Mr Connor had written he was unable to meet his obligations concerning the loan and offered an apology, the judge noted.

In those circumstances, judgment in the sum of €15.58 million was entered against both men.

The judge adjourned to July 24th the application against Mr Guing and Mr Lawlor for judgment for some €15.44 million after their counsel Daniel Sims said he wished to assess if documents due to be discovered today by AIB in other proceedings offered any defence to the judgment application.

Those other proceedings involved claims against solicitor Miriam Kavanagh who had advised his clients in relation to the land transactions, counsel said. His clients had written asking Ms Kavanagh about possible defences to the bank's application and received a "somewhat surprising" response from her solicitors suggesting his side were seeking legal advice.

Mr Sims also said it might be there was no defence to the bank's proceedings against his clients but he wanted a short opportunity to assess the situation. His clients were in this position because of "unclear dealings, to put it lightly".

Mr Justice Kelly said the letter on behalf of Ms Kavanah made a number of "telling points", including Mr Guing and Mr Lawlor should be able to instruct their own solicitors as to the facts and then decide if they had a defence. The letter also stated it was inappropriate for Ms Kavanagh to tender any advice as she was subject of a professional negligence claim by them.

The judge said there appeared a "thin enough" basis for a defence but he would allow Mr Guing and Mr Lawlor an opportunity to examine the AIB documents.

AIB has brought the proceedings over loans issued for development and other purposes, including a €4.8 million facility to buy 10 acres at Daingean Road, Tullamore and a €8.5 million loan to part fund the purchase of 16 acres at The Downshire, Edenderry.

The bank also sought from Mr Killally and Mr Connor only a sum of €145,022 related to six joint accounts operated by them at the AIB branch in Edenderry.

AIB alleges all four defendants have failed to meet repayment obligations. It also claims Mr Guing and Mr Lawlor had told it the true nature of the transactions by which the Daingean Road and Downshire lands were acquired were concealed from them by Mr Killally and Mr Connor who had made secret profits from the transactions.

Mr Guing and Mr Lawlor had, through their solicitors, asked about the extent of AIB's knowledge of the "true nature" of those transactions, the Bank said. It was claimed the Bank had a responsibility, through an alleged agent of it - Charterhouse Mortgage Centre Ltd - to inform them their co-guarantors were persons of "nefarious character" but failed to do so.

AIB described as meaningless and without substance the claims made and has specificially denied Charterhouse had any involvement in arranging the loans.

Earlier this month, a legal action was settled against Mr Killally and Mr Connor over the claims they made "secret profits" of several million from four land deals. That action was brought by Mr Guing and Mr Lawlor over all four deals while Adrian Daly, Racefield House, Cappincur, Co Offaly, claimed he was involved as a partner in two of the deals.