ACCBANK IS claiming €7 million damages from a solicitor who previously acted for it over his alleged failure to ensure the bank had good security for a loan to property developer Francis Tiernan to purchase lands at Naas, Co Kildare.
Mr Tiernan, Longfield Road, Newry, Co Down, got the loan in 2006 to buy 103 acres of lands zoned residential at Castlewarden, Naas, with the intention of “flipping on” the lands within a year at a profit, Lyndon MacCann SC, for ACC, told Mr Justice Frank Clarke at the Commercial Court yesterday.
Counsel said it later emerged Mr Tiernan never owned the Naas lands and the bank had no first legal mortgage over those. Mr Tiernan had defaulted on payment of the Naas loan and other loans advanced to him over five years by ACC’s Park Street, Dundalk, Co Louth branch and the bank secured judgment for €12 million against him last year.
In its proceedings against solicitor Brian Johnston, practising as Brian Johnston Company Solicitors, Park Street, Dundalk, ACC is claiming entitlement to €7 million over alleged negligence by him related to his alleged failure to put in place securities for the loan.
Mr Johnston denies negligence and has alleged failures by Joseph Traynor, of Traynor Mallon solicitors, to honour alleged undertakings given by him to ensure the bank had good security.
Mr Johnston has also alleged ACC had agreed to allow the loan be drawn down on the undertaking of Mr Traynor to take the necessary steps to ensure the Bank had good title to the lands at Naas. The bank denies it was aware of any such undertaking by Mr Traynor prior to the drawdown of the Naas loan.
