RACEHORSE TRAINER Jim Bolger has received "a significant six-figure sum in damages" from the AIB in settlement of his six-year High Court legal action against the bank for overcharging on his account over a 12-year period.
Mr Bolger launched his legal action against the bank in July 2002 following the discovery of overcharging on his AIB account in 1998. The discovery prompted him to hire consultants to carry out a larger audit of his account dating back to 1986 to assess the full extent of overcharging on his account.
AIB and Mr Bolger reached a settlement of his long-running action yesterday before the full hearing of the case at the High Court in Trim, Co Meath.
Mr Bolger was unavailable for comment. However, a spokesman for the horse trainer said: "He is pleased to have received a substantial six-figure sum in damages from AIB in relation to this case."
A spokeswoman for AIB declined to comment. It is understood that AIB has agreed to pay Mr Bolger more than €320,000 in damages to compensate him for the losses arising from the overcharging.
The consultants auditing Mr Bolger's AIB account found that a limit on his loan account had lapsed, leading the bank to levy surcharge interest at a rate of 6 per cent per annum, in addition to the normal interest rate on the loan, over several months between 1987 and 1993.
The audit also uncovered overcharging on the trainer's current account between 1986 and 1998. It is understood that Mr Bolger had not been informed by the bank that surcharge interest was applied on the overdraft on his current account over the 12-year period.
The bank had intended to defend itself against Mr Bolger's claims, believing that it had informed him about the surcharge interest on his account. Various filings have been made in the case over the last six years.
However, the bank decided to settle the case before its full hearing yesterday.
Mr Bolger, who is based in Coolcullen, Co Carlow, is one of Ireland's top horse trainers. One of his horses, New Approach, won this year's Epsom Derby.
The horse runs in the colours of Princess Haya, wife of Sheikh Mohammed, ruler of Dubai, and a daughter of the late King Hussein of Jordan.
Horse trainer Aidan O'Brien, champion jockey Tony McCoy and former Grand National-winning jockey Paul Carberry worked as apprentices with Mr Bolger.
