Bank of Ireland has secured judgment orders at the Commercial Court requiring a Dublin solicitor and his wife to repay more than €71.5 million arising from unpaid property loans and guarantees.
The judgment orders were granted by Mr Justice Peter Kelly over breaches of a settlement reached last March of proceedings by the bank against solicitor Brian O'Donnell and his wife Dr Mary Pat O'Donnell, Gorse Hill, Vico Road, Killiney, Co Dublin, and a number of companies.
Mr O'Donnell, who has described himself as one of Ireland's leading corporate lawyers, with a practise, Brian O'Donnell & Partners, at Merrion Square, Dublin, was not at the Commercial Court today when the case was dealt with but the judge said he was satisfied the defendants had been served with the proceedings and were aware of them.
The bank previously claimed that companies in which the couple have shareholdings had extensive additional borrowings of some €800 million with other financial institutions across several jurisdictions.
Paul Gardiner SC, for the bank, told the judge today the March settlement had required that payments of €8.5 million be made by July 31st last with another payment of €20 million to be made by the end of last month but those payments were not made.
The settlement also provided, where there was a breach of terms, the bank was entitled to recover judgment against the couple and the companies and that, in those circumstances, they would consent to judgment, counsel said.
When the judge asked whether there was any appearance for the defendants, a partner with Whitney Moore solicitors, who had acted for the O'Donnells in relation to the settlement, said his firm had been served with the documents but had received no instructions from the couple.
Mr Gardiner said Mr O'Donnell had written to the bank last week making a number of allegations which the bank believed it was inappropriate to read in court because the claims were untrue and defamatory.
Mr Justice Kelly said he had received a letter today from Mr O'Donnell and he believed the bank had acted correctly in not reading out in court the letter sent to it by Mr O'Donnell.
The judge, who called the O'Donnells twice in court, said he was satisfied the O'Donnell side were aware of the proceedings and that service had been effected on Whitney Moore on accordance with the terms of the settlement agreement. He was also satisfied on the evidence before him the settlement had been breached and the bank was entitled to judgment.
Mr Justice Kelly entered judgment for €71,575,991 jointly and severally against Mr and Mrs O'Donnell, plus costs. He also ruled the bank was entitled to judgment orders against three companies of the couple over the same loans. The three companies are GreyStoke Societe Anonyme, a Luxemburg registered company; Vico Swiss Holdings AG and Avoca Properties Ltd.
BOI's claim against the O'Donnells arose over various loans and guarantees, including a €7.7 million loan to purchase a property at Ailesbury Road, Dublin and other facilities to refinance property loans with Ulster Bank and Anglo Irish Bank.
The couple had previously argued the bank was acting unfairly and unreasonably in demanding repayment and also complained the action was "ill-considered" with negative publicity over it devaluing their international property portfolio.
The bank had denied those claims and argued that what the couple essentially wanted, in light of the global financial crisis which had "consumed" many of the couple's investments, that the bank should "simply not call in the money".
In a statement of affairs previously provided, Vico was said to have assets valued at more than €1 billion but BOI had queried the property values on which the assets statement was based.
