Hotelier Jim Mansfield is opposing Bank of Scotland’s claim for summary judgment orders for €206 million against him, the Commercial Court has head.
Mr Mansfield is contesting the claim on grounds including that the bank’s failure to honour an alleged agreement to loan more money to complete the Citywest convention centre lead to the collapse of the Mansfield group.
The claim that this “magnificent empire” collapsed because of BOS’s refusal to provide additional funds in 2008, a time when most of the Mansfield group loans were in “serious and repeated default” default with more than €200m owed to the bank, was “extraordinary” and unsupported either by documents or the conduct of the Mansfield side, Paul Gallagher SC, for BOS, said.
Mr Mansfield’s case was “utterly fanciful” and among the most “far-fetched” to have come before the Commercial Court, Cian Ferriter SC, also for BOS, said. It mounted to Mr Mansfield and his companies having suffered “some form of commercial repressed memory syndrome” and forgetting for three years about an alleged agreement crucial to the companies survival.
Counsel were outlining the bank’s case for summary judgment orders against Mr Mansfield arising from his personal guarantees of debts of various companies of his.
Mr Mansfield, represented by Patrick Leonard, contends he has an arguable defence to the bank’s claim requiring the court to refuse summary judgment and allow the matter go to a full hearing.
The hearing of the bank’s application concluded at the today before Mr Justice Peter Kelly, who reserved judgment.
The case relates to loans provided by BOS to HSS, Jeffel and Park Associates Ltd - companies of which Mr Mansfield is a director - for purchase of lands and development of a conference centre, offices, a golf course, residential units and a hotel. BOS appointed a receiver to HSS in July last year.
Among various claims, Mr Mansfield has alleged business was conducted between him and BOS via verbal agreements on funding with the “paperwork” put in place later.
