A FIANNA FÁIL councillor for Offaly and his wife have been ordered by a High Court judge to repay commercial loans totalling some €2.6 million to Bank of Ireland.
Mr Justice Peter Kelly made the order yesterday against Gerard Killally, an auctioneer, and his wife Naomi, Shean, Edenderry, who were separately represented, after being told that there was no dispute that the bank was entitled to repayment of loans due but there was a dispute about the exact amount owed.
Bernard Donleavy, for Ms Killally, said she believed the debt was overstated by some €250,000 and was opposing the case being admitted to the Commercial Court because this would result in unnecessary costs being incurred and the bank could instead have gone into the commercial properties involved.
Noting the amount sought by Bank of Ireland was €2.9 million and that it was entitled if it chose to apply for a money judgment, the judge said he would admit the case and enter judgment against the Killallys in the sum of €2.6 million. He adjourned to January next the hearing of the dispute over whether the remaining money up to €300,000 owed.
The bank claimed it advanced loans of some €2.9 million to Mr Killally on accounts maintained by him at its branch in Edenderry and that an additional €53,000, plus interest, was due on money lent and covered by a letter of guarantee. It also claimed it had loaned some €2.9 million to Ms Killally on accounts maintained by her at the same branch.
It claimed the loans were advanced to purchase commercial properties and to refinance existing facilities.
It also claimed a guarantee of July 2007 effectively made both defendants liable jointly and severally for the money lent.
The bank claimed it had extended credit facilities to Mr Killally, who had banked with it since 1992 in Edenderry, for an extended period and had advanced a €1.5 million commercial mortgage facility in February 2006.
It claimed it made further facilities available in May 2006 and in August 2006, it made €1.2 million available under a credit agreement facility.
The defendants had failed to make repayments in accordance with the terms of the various facilities, it claimed.
Yesterday’s proceedings are the second set of proceedings involving Mr Killally to be admitted to the Commercial Court.
In earlier and separate proceedings, Mr Killally and another auctioneer, Richard Connor, manager of the Co Offaly senior GAA football team, are being sued over “secret profits” of several million euros allegedly made by them from a number of land deals in Co Offaly.
That case against both men, practising as Gerard Killally Auctioneers, was admitted to the Commercial Court in October when Mr Justice Kelly noted it involved “serious allegations”.
Adrian Daly, Racefield House, Cappincur, Tullamore, Declan Guing, Carrick Road, Edenderry, and Frank Lawlor, Clonmullen Lodge, Edenderry – brought the case over partnerships formed between various combinations of the sides to acquire and deal in lands.
It is claimed the defendants introduced the respective partnerships to the deals, acted as negotiators and agents for the partnerships and made secret profits from deals not disclosed to the partnerships.
The plaintiffs are seeking damages for alleged negligence, misrepresentation, breach of duty, breach of contract and also want an inquiry for damages for alleged unjust enrichment.
Mr Killally, from Edenderry, was twice a Dáil candidate. An auctioneer and accountant, he was first elected to Offaly County Council in 1999.
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