ACC BANK plc has brought court proceedings for orders requiring a solicitor to perform undertakings which it says are necessary to ensure the bank has security for a number of loans amounting to more than €2 million, advanced to two property development companies on dates in 2004 and 2005.
The action by ACC against Joseph Traynor, practising as Traynor & Company Solicitors, Clanbrassil Street, Dundalk, Co Louth, was admitted to the list of the Commercial Court yesterday.
Counsel for the defendant said he was instructed that four of the undertakings had been complied with and that further progress on the fifth would be achieved this week. He asked that the proceedings be adjourned for a week.
Eoin McCullough SC, for the bank, said he would not object to a one-week adjournment. Mr Justice Peter Kelly agreed to the adjournment.
The dispute relates to a number of loans advanced by the bank to Speedwell Developments Ltd on dates in 2004, and other loans to Tronmarron Ltd in 2005. The bank claims that last April it had demanded repayment of a total of €1.76 million from Tronmarron and €369,000 from Speedwell, but those sums had not been paid.
The bank claims it had agreed to accept solicitor's undertakings from the defendant in relation to those loans, but had recently learned the defendant had not complied with those undertakings in connection with the loan facilities drawn down by Speedwell and Tronmarron.
In an affidavit for the bank, Ian Johnstone said the bank's discovery of the failure to comply with the undertakings given to it comes in the wake of revelations concerning apparent irregularities in the form of solicitor's undertakings provided by other firms of solicitors to various banks.
The ability of banks in general, and ACC in particular, to engage in the financing of property transactions depends on the unquestioned reliability of solicitor's undertakings, he said. The bank believed it was of significant commercial urgency that this matter be decided at the earliest opportunity.
