A financial institution was accused of negligence, breach of duty of care, non-compliance with instructions and breach of contract in its dealings with a customer's account, the High Court heard yesterday.

Cornelius Cagney, who is representing himself, is taking a case against First Active, formerly First National Building Society, for what he alleged were unauthorised transactions in an account he set up in May 1995.

The court was told that Mr Cagney's wife was killed and he was seriously injured in a traffic accident in Waterford in 1992. While he was recuperating in hospital, his two daughters, who were 18 and 14 at the time, were left without access to the family accounts, which he said was a traumatic time for them.

In 1995, he said he decided to open a joint investment account for himself and his two daughters which could be accessed by the others in the event of any of them dying.

At this stage, he said he was introduced to Declan McCann, the manager of the First National Building Society in Kilkenny, by a friend and business acquaintance, Tony Sheridan.

Following three meetings with Mr McCann, Mr Cagney said he decided to invest two cheques - one for £118,325 from an encashed Norwich Union policy and one from Lombard & Ulster for £22,836.48. Both cheques were crossed, non-negotiable and account-payee only, Mr Cagney said.

At a meeting attended by Mr Cagney, Mr McCann, Mr Sheridan and Mr Cagney's daughter, Helena, in the Cagney house in Naas, Co Kildare on May 16th, 1995, it was agreed that the total sum of £141,161.48 was to be invested in a joint account in three names - Cornelius Cagney, Helena Cagney and Genevieve Cagney. All details were included on an application form which was filled in at the Cagney home that night, according to Mr Cagney.

Mr Cagney said that Mr McCann agreed to send him copies of the application form and the two cheques, but he said this never happened.

Two years later, when he decided to check on the status of the investment, Mr Cagney said the Kilkenny branch of First National informed him that no money had been invested in a joint account with three names.

Mr Cagney said he visited the branch to meet Mr McCann who told him that the building society could not invest in Genevieve's name as she was a minor.

Mr Cagney said an account in the name of C Cagney and H Cagney had a sum of £41,000 lodged by cheque, even though he had never given First National a cheque for that amount. He said Mr McCann then showed him an account for Mr Sheridan under the name J Sheridan in which £100,000 had been lodged on May 19th, 1995. Sums had been withdrawn from this account, leaving £868, he said.

Asked by Mr Justice Peter Charleton if he had wanted £100,000 to be invested in Mr Sheridan's business, T&E Fashions, Mr Cagney said he had never given any instructions for the money to be put into T&E Fashions.

Mr Cagney also alleges that First National sold shares worth about £10,500 held in his and his dead wife's names without his authorisation.

The case continues today.