CORK BUSINESSMAN John Fleming is opposing a claim by AIB for €26 million summary judgment orders against him over guarantees of loans to Fleming Energy to buy a majority shareholding in a US energy company, the Commercial Court heard yesterday.

Sarah McKechnie, for Mr Fleming, told Mr Justice Peter Kelly her client wants to defend the claim on several grounds, including that he had borrowed as a consumer in the transaction and was entitled to the protections under the Consumer Credit Act.

Mr Fleming is alleging irregularities in relation to how the guarantee was executed. He claims he had agreements with the bank that certain assets of his would be protected, including his family home.

Dermot Cahill, for AIB, said none of the points advanced presented any defence. The bank would supply an affidavit concerning how the guarantee was provided, including that Mr Fleming had been sent the guarantee by post and had returned it signed and witnessed.

Mr Justice Kelly said he had no idea if any of the grounds of defence advanced were valid but would give Mr Fleming an opportunity to put matters on affidavit. He made directions for the exchange of affidavits between the sides and returned the summary judgment application to later this month.

The claim arises from a guarantee allegedly executed by Mr Fleming, now said to be living at Holbrook Close, Billericay, Essex, England, on May 20th, 2008, of all liabilities of Fleming Energy, with registered offices at New Cork Road, Bandon, Co Cork, to AIB to a maximum sum of €26 million.

AIB claims the guarantee was part of the security provided for credit facilities advanced to Fleming Energy. It is claimed the main loan was for $32.4 million advanced in June 2007 to assist with the purchase of a 51 per cent shareholding in Plymouth Energy LLC, a company registered in the US and established to purchase and develop a 57-acre site in Iowa.