LAWYERS FOR Bank of Ireland have denied as “outrageous” court claims by Co Offaly councillor Gerard Killally that he felt “coerced” by the bank into signing a letter relating to the repayment of commercial loans made to him and his wife.
At the Commercial Court yesterday, Mr Justice Peter Kelly ordered that the dispute between the Killallys and the bank over whether they owe it a total of €2.6 million – which they accept – or the higher figure of €2.9 million – which they reject – should go to a full hearing.
Mr Killally, a Fianna Fáil councillor and auctioneer, and his wife, Naomi, of Shean, Edenderry, have agreed they owe €2.6 million but are disputing an additional €300,000 which the bank says it is also owed.
Yesterday, Mr Justice Kelly confirmed an order that Mr Killally and his wife repay €2.6 million owed to the Bank of Ireland relating to the loans and directed the dispute over the additional €300,000 would be determined at a future hearing.
Bank of Ireland claims the loans advanced to the Killallys for the purchase of commercial properties and to refinance existing facilities made both of them liable jointly and severally for the money.
The Commercial Court heard yesterday Mr Killally claimed the bank pressured him and his wife into signing a letter last April on how the proceeds of the sale of a property the Killallys owned in William Street, Tullamore, should be distributed.
In an affidavit, he said they felt “coerced” during their dealings with bank official Paschal Naughton when they signed the letter over how the residue from the sale of this property should be dealt with.
Jarlath Ryan, counsel for the bank, said Mr Killally’s allegation of coercion was strongly denied and regarded by the bank as “outrageous”.
The Killallys had voluntarily agreed the extra money from the sale of the property would be set off against their liabilities to the bank and it was up to the bank how these monies should be used, Mr Ryan said.