Businessman who put away bonds was told by bank that accounts were closed

A Dublin businessman who put away two €6,350 bonds was told when he went to cash them that the accounts had been closed years ago, the Circuit Civil Court has heard.

Brendan Dunne (62) said he and his late father, James Dunne, invested almost 30 years ago in two Cash Bonus Certificates which were deposited in a security envelope at a Northern Bank (Ireland) (now Danske Bank) branch.

He told his barrister Stephen Moran that he had the intention to cash the certificates when he retired, and had not inquired about them because it was “money to be forgotten about” as he thought it was in a safe place.

The court heard that he was told by the bank two years ago that the branch was discontinuing its safety deposit facility and he was asked to come and collect the two documents.

Mr Dunne, who inherited the certificates when his father died 14 years ago, said when he had wanted to cash them he was told that the accounts had been closed years ago.

Circuit Court president Mr Justice Raymond Groarke heard that neither Mr Dunne nor his father had closed the accounts, and there was a requirement written on the certificates that they should be handed in to be cashed.

Mr Dunne, of Granville Road, Cabinteely, Co Dublin, sued Danske Bank A/S for breach of contract. He claimed he was owed €20,851, comprising of the principal sum, interests and bonus.

The bank claimed the accounts had been closed more than 15 years ago, allegedly by Mr Dunne's father James. It had no records of the closure of the accounts as the regulations obliged them to keep documentation for a limited period only. It claimed that if the accounts, which were dormant, had not been closed, the funds would have been transferred to the National Treasury Management Agency after 15 years.

The bank also claimed that Mr Dunne should have inquired earlier about the accounts, and that his claim was now statute barred.

Judge Groarke, awarding Mr Dunne €17,400 along with his legal costs, said he was satisfied that Mr Dunne’s father did not close the accounts.

He said Mr Dunne was perfectly entitled to believe that nobody could touch the funds as long as he held the certificates.