A HIGH COURT judge has described as “extraordinary” the failure by former Irish Nationwide Building Society chief executive Michael Fingleton to include his €27 million pension in a list of assets and liabilities given by him to a bank, which yesterday secured summary judgment for €13.6 million against him over unpaid loans.
Mr Justice Peter Kelly said the pension “eclipsed” all Mr Fingleton’s other assets and it seemed “extraordinary” he had omitted his biggest asset in his hand-written statement of affairs.
The judge made the remark yesterday before he granted Ulster Bank summary judgment for €13.6 million against Mr Fingleton over the unpaid development loans.
Rossa Fanning, for Mr Fingleton, described as a “genuine error” the failure to include reference to the pension in Mr Fingleton’s statement of affairs of March last. There was no intention to mislead and the pension details were in the public domain, counsel said.
Mr Fanning did not oppose the summary judgment application but he raised issues about defects in the bank’s documents and the manner in which it granted the loan. The bank appeared to have relied on its perception of Mr Fingleton’s worth from media reports, he added.
Brian McGuckian, for the bank, earlier said it became concerned about the loans after receiving a statement of affairs from Mr Fingleton that contained no reference to his pension. The bank was also concerned at an assignment of Mr Fingleton’s interest in his family home (valued at €3 million) at Shankill, Co Dublin, to his wife.
Mr Justice Kelly also granted summary judgment yesterday for €12 million over the same loans against Fianna Fáil Senator Francis O’Brien, Latto, Castleblayney, and two Monaghan property developers, Noel Mulligan, Moyles, Castleshane, and Charles McGuinness, Tully House, Monaghan.
He noted a statement of affairs for Mr O’Brien showed a deficit of some €12.8 million. The three had not advanced a defence to the €12 million sum but disputed how the remaining sum of about €1.6 million was arrived that. Their liability for that will be decided later.
Mr Justice Kelly refused an application by all four for a stay on registration and execution of the judgment in light of continuing negotiations with the bank and hopes that planning permissions may enhance the value of the lands.
All four had opposed the proceedings being transferred to the Commercial Court because of the bank’s alleged delay in pursuing its claim and defects in its documents.
The case arose from a €13.2 million loan advanced in 2006 to the four to buy a 50-acre site at Swellan Upper and Lower, Farnham Road, Cavan. The loan was secured on the site. A demand for repayment was served in June last.
The bank claims that the most recent valuation on the land was €3.7 million. The court heard negotiations between Mr Fingleton and the bank had continued for some time, including over last weekend.
In response to the judge, counsel agreed Mr Fingleton was not a client of the bank when the monies were loaned and it had not sought net worth statements from the four until some years later.
Mr Justice Kelly said that he was not required to address the bank’s “stupidity” in entering into such a large loan with someone about whom it knew nothing except that his name appeared regularly in newspapers. The issue was whether the bank’s delay disentitled it to transfer. He was satisfied there was a long period of toing and froing between the sides and interest payments continued to be made and the bank was entitled to have the case transferred.
