Developer claims negligent misrepresentation by AIB
A BUSINESSMAN is entitled to a hearing of his claim that he is only 50 per cent liable for €4.6 million loans related to a shopping centre development in Co Tipperary, the Commercial Court has ruled.
John Hegarty, Ballygrannan, Drombanan, Co Limerick, who inherited his family scrap metal business, is entitled to argue he was the victim of negligent misrepresentation by AIB when seeking loans to invest with others in a shopping centre in Clonmel, Mr Justice Peter Charleton ruled.
The investment was also to buy development land in Maynooth and Kildare.
The loans were later taken over by Nama, which last June sought summary judgment against Mr Hegarty who, the judge noted yesterday, had developed the family scrap business and accumulated “substantial wealth”.
In the Commercial Court last June, Mr Hegarty consented to entry of summary judgment for €15.5 million against him after accepting he had no defence to the demand in relation to borrowings and guarantees by him for the Maynooth land.