Diageo seeks €3.2m order over personal guarantee

DRINKS GIANT Diageo Ireland is seeking €3

DRINKS GIANT Diageo Ireland is seeking €3.2 million summary judgment orders against John Galvin, Lough Mahon House, Rochestown, Co Cork, on the back of a personal guarantee.

Judgment in the Commercial Court is sought over guarantees given by him in May 2009, as a director of Galvins Wholesale Ltd, over debts of that company in an effort to ensure Diageo continued to provide credit to it.

Galvins Wholesale was under court protection but that examinership failed and a liquidator was subsequently appointed in November 2009.

Diageo claims that Mr Galvin is liable under his guarantee for €3.2 million debts of the company and demanded payment of that amount last December.

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Gary McCarthy, for Mr Galvin, said his client first learned of Diageo’s proceedings as he was on his way to South America on a planned break.

Mr Galvin would be back in Ireland on February 15th and needed time to address the claims raised to which, Mr McCarthy argued, his client had a defence.

Mr McCarthy said it would be argued that the Diageo claim did not include various discounts and should be for about half the amount claimed.

There were also some issues concerning invoicing arrangements which needed to be investigated.

Mr Justice Kelly said he was satisfied counsel had outlined a statable defence and adjourned the matter to March 4th.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times