A challenge by the four adult children of solicitor Brian O’Donnell to the appointment of a bank receiver over their luxury home in Killiney has opened at the Commercial Court.

Bank of Ireland, which is seeking to enforce a €71 million judgment obtained by it against Mr O'Donnell and his wife Dr Mary Patricia O'Donnell arising from unpaid loans, claims the children are not in lawful occupation of the property at Gorse Hill, Vico Road, Killiney.

According to a previous statement of net worth from the couple,  the property was valued at €30 million in 2006 but now has an estimated worth between €6 million and €7 million.

In their action before Mr Justice Brian McGovern, Alexandra, Blake, Bruce and Blaise O’Donnell are challenging the appointment by the bank of a receiver and manager over Gorse Hill on June 7th 2012.

The children, represented by Ross Maguire SC, are also challenging mortgages and guarantees entered into in 2006 by Vico Ltd, the Isle of Man trust company which owns Gorse Hill.

The children argue Gorse Hill is owned for several years by the Vico trust company of which they are the beneficiaries and they also claim the bank was well aware the trust, not their father, was the owner of the property.

The children claim the trust was set up about December 1997 and the Gorse Hill property was put into it some years later prior to the making of the loans at issue between their parents and Bank of Ireland.

While the bank had accepted statements of net worth from their father which referred to Gorse Hill as his property, the bank was aware the trust owned the property, they allege.

In opposing the action, the bank contends Vico Ltd had provided Gorse Hill as security for loans advanced by the bank to Brain and Mary Patricia O’Donnell and the children never had any legal interest in the property. On those and other grounds, it argues it was entitled to appoint a receiver.

The case, listed to run for six days, continues.