Woman (96) settles case against cousins over ‘$300,000 loans’

A legal action by a 96-year-old woman against two second cousins for repayment of $300,000 in alleged loans has been settled on confidential terms.

Retired waitress Kathleen McNicholas, originally from Co Mayo and living in Manhattan, New York, US, sued Olive Cunningham, of Rockfield Park, Galway, and her sister Ann Cunningham, of Fursey Road, Shantalla, Galway.

Ms McNicholas claimed she gave them the money to do up their houses but they did not respond when she asked for the money back.

Ms McNicholas, the only surviving member of a family of six children, who has no children herself, claimed she needed the money back to help pay for her own care.

The court heard she had saved hundreds of thousands of dollars since moving to America in 1954 working as a waitress and also from investments in stocks.

The case opened on Wednesday with Ms McNicholas giving evidence by video link from a neighbour’s apartment in New York.

She was due to be cross examined on Thursday but the court was told by her counsel, Oisin Quinn SC, the matter had been settled following talks and could be adjourned to October for implementation of the settlement.

Mr Justice Charles Meenan congratulated the parties on reaching an agreement.

In her defence to the claim, Olive Cunningham said the $200,000 she received from Ms McNicholas was given to provide 24-hour home care for her ill brother, Johnny McNicholas, the only member of the family still living on the family farm near Knock, Co Mayo, and who died in 2012.

Residue

She said she set up a trust to pay for that care and, after Mr McNicholas died, the residue from it came to her.

She also received $50,000 as a gift from Ms McNicholas to “treat herself” and her immediate family. None of the money was given as a loan, she said.

Ann Cunningham said she received an unsolicited €100,000 from Ms McNicholas during a visit by her and Olive to New York in 2013. She said it was given as a gift because Ms McNicholas “did not want to leave any money behind after her death”.

It was one of a number of gifts she received, including another $100,000 in 2009, and over which there is no claim by Ms McNicholas, the court heard.

In her direct evidence, Ms McNicholas said the money was clearly given as a loan for both women to do works on their homes. “When I asked for it back, they said they were selling their houses, both of them, and would give the money as prices were going up,” she said.

After making those phone calls seeking repayment, she says she could not contact them again.

Asked by her counsel was the money to Olive a gift, she replied: “That is wrong, how many people could give $200,000 as a gift, that is wrong”.

She also said she had never heard anything about a trust being set up to care for Mr McNicholas.