Ulster Bank secures €19.8m order against Dublin brothers

ULSTER BANK has secured judgment orders of €19.8 million from the Commercial Court against two Dublin brothers over unpaid loans given to them mainly for investment purposes.

The bank sued Anthony Deane, Brighton Road, Foxrock, Dublin, and Seán Deane, Cappadoo, Clane, Co Kildare, over loans issued in 2008. They included a €10.4 million facility to fund tax expenses and pay for costs in relation to a Bank of Ireland Brussels investment and to fund an investment in Britain. Another €3.37 million was provided to fund the purchase of 34 apartments in Rathfarnham, Dublin, while €550,000 was to be used to fund interest on the loan facility.

Mr Justice Brian McGovern yesterday ruled that the bank was entitled to summary judgment in a total sum of about €19.8 million against the brothers.

The judge said the Deanes had made much of the fact that they were assured the bank only expected payment out of the proceeds of the sale of dwellings which were being constructed by their company, Deane Homes Ltd.

They understood it was a long-term relationship and the bank would be repaid when furnished dwellings were sold, he noted.

While he was quite satisfied that was the understanding of the parties when they entered into the agreement, there was nothing to suggest such an understanding had acquired the status of a legal obligation, Mr Justice McGovern added. The understanding was merely aspirational.

The money was lent on the basis of facility letters which were clear on their face and which were payable on demand, he found.

The Deanes had claimed they were entitled to defend the case on the basis of a side agreement reached with the bank that the loans were due only on the sale of sites at Stocking Lane, Dublin.

The judge said the defendants had offered no evidence other than verbal discussions which, they argued, altered the terms of the facility letters. Such evidence was inadmissible, he said.