Glen Dimplex boss Seán O’Driscoll and IBRC sue each other over personal investments

The chairman and chief executive of electrical giant Glen Dimplex is being sued by Irish Bank Resolution Corporation (IBRC) over alleged failure to repay around €1.8 million in loans advanced for investments in funds operated by the bank.

Seán O’Driscoll has, in turn, issued four sets of proceedings claiming some €5 million against IBRC in relation to a division of the bank specialising in personal and retirement investment services, the IBRC Assurance Company.

In those actions, he is claiming damages for alleged mispresentation and negligent mis-statement regarding his decision to invest in four different funds. His claims include for some €2 million relating to his investment in the Woolgate building in London and for losses arising from an investment in the bank’s fund for hotels in New York.

Commercial Court
When the proceedings against Mr O'Driscoll, Granville Road, Blackrock, Co Dublin, came before Mr Justice Peter Kelly in the Commercial Court yesterday, Cian Ferriter SC, for the bank, said the sides had agreed they could be adjourned pending the outcome of a consolidated hearing of Mr O'Driscoll's actions and his undertaking to lodge €1.8 million into a solicitor's account.

The bank alleges that part of Mr O’Driscoll’s claim against it is governed by the Supreme Court’s rejection of businessman Gerard McCaughey’s claim against IBRC over investment in the New York hotels fund.

Three of the Mr O'Driscoll's four actions will proceed, but the one relating to the New York hotel fund will come back before the Commercial Court next week when the judge will be updated by Martin Hayden SC, for Mr O'Driscoll, on whether it also will proceed.

Loan facilities
In its action, IBRC is seeking judgment over the alleged failure to repay fully three loan facilities of April, 2009.

In an affidavit, Stephen Egan of IBRC said the bank kept Mr O'Driscoll's borrowings under review following expiry of the loans in March, 2010. In May, 2010, Mr O'Driscoll told the bank he believed the reports on the valuation of his investment were worthless.

Mr O’Driscoll later said he had no intention of discussing his indebtedness to the bank until his investment queries were addressed.

The bank sought to address his requirements, but it became apparent he would not engage for the purpose of discussing repayment or refinancing of the loans, Mr Egan said.

After IBRC was put into special liquidation in February 2013, the joint liquidators confirmed the bank should proceed to demand the outstanding loans.