THE COMMISSIONERS of Irish Lights have taken a legal action against ABN Amro Bank NV over its failure to pay out a €912,000 bond arising from the alleged failure of another company to complete works on the commissioners’ new premises in Dún Laoghaire.
Ms Justice Mary Finlay Geoghegan yesterday admitted the proceedings to the list of the Commercial Court.
It is claimed ABN Amro Bank, registered in Rotterdam, issued a bond in July 2007 under which the bank, on behalf of Metallbau Hirsch AG, of Pembroke Road, Dublin, guaranteed to pay to the commissioners an amount of not more than €912,380 if Metallbau failed to meet contractual obligations to the commissioners related to works at their new premises.
Metallbau had failed to carry out the works contracted for and was placed in liquidation in August 2007, it is claimed.
The commissioners say the bank has claimed that, after it issued the bond to Metallbau, the company was to pass the bond on to the commissioners but Metallbau had in fact returned the bond to the bank, apparently informing the bank that it could be cancelled.
The commissioners claim the bank had never told them this and had never asked them whether this information from Metallbau was correct. In those circumstances, they claim the bank’s purported cancellation of the bond is null and void and that the bank remains liable to the commissioners under the bond.