Plans by a Sligo couple for a house purchase fell through because National Irish Bank 'bounced' a £6,500 cheque drawn by the couple although the bank was aware they had more than £300,000 lodged in a financial institution, the High Court was told yesterday.
Mr Christopher Lynch had received £512,000 in damages arising out of injuries sustained in a road traffic accident in 1986, Mr Adrian Hardiman SC said.
Mr Lynch and his wife, Mary, of Sea Road, Sligo, had banked with the NIB branch at Stephen Street, Sligo, for several years and had a savings and current account there. They had £300,000 on deposit with NIB but had decided in 1991 to lodge it in an investment account with Norwich Union. Counsel said it was in the course of the Lynchs' efforts to buy a house later that year that NIB very badly defamed them.
He said NIB, although fully aware the Lynches had £300,000 on long-term deposit with Norwich Union and were involved in a house transaction, had written 'Refer to Drawer' on a cheque for £6,500 drawn by the Lynches and intended for the completion of payment of the deposit on the house. As a result, the sale fell through, counsel said.
In an action taken by Mr Lynch and his wife against National Irish Bank, the couple are seeking damages for defamation and negligence arising out of the bank's handling of the cheque. The bank is denying the claims.
Mr Hardiman, with Mr Garrett Cooney SC, said the action was taken on the basis that NIB had, in 1992, behaved towards the Lynches in an arrogant and malicious fashion and published something very seriously defamatory of them and acted in gross negligence towards them.
Even now, six years later, they did not know why NIB had refused to honour their cheque, he said.
The hearing continues today before Mr Justice Budd and a jury.