Judge dismisses case over wind farm loan

A Co Roscommon farmer's plans to establish a wind farm on 940 acres of land at Ballisodare, Co Sligo, collapsed when he failed…

A Co Roscommon farmer's plans to establish a wind farm on 940 acres of land at Ballisodare, Co Sligo, collapsed when he failed to get planning permission, a judge heard yesterday.

Mr Michael Hanly, French Park, Co Roscommon, told Judge Elizabeth Dunne in the Circuit Civil Court he had been confident of obtaining planning permission because he had "spoken to a few people beforehand".

He had borrowed €317,500 from Irish Nationwide Building Society in 1995/6 to fund the purchase of the land and establish a working capital but by August 1996 ceased making the monthly repayments of €2,500 when planning approval failed to materialize.

The court heard Irish Nationwide had obtained a judgment for possession of the lands but had agreed to allow Mr Hanly to sell them himself and redeem the mortgage, which he did in 1998.

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He claimed that after having repaid the principal with interest and penalties on default repayments, the society then wrongly charged him an early redemption penalty of €17,400.

Mr Hanly sued Irish Nationwide for recovery of the €17,400 together with €10,600 calculated consequential losses.

Judge Dunne granted Mr Brendan Watchorn, counsel for the society, an order dismissing Mr Hanly's claim. She said the kernel of his claim had been founded on the argument that the society could not penalise him for voluntary premature redemption of the loan on the basis it had forced a compulsory sale on foot of the judgment it had obtained against him.

Judge Dunne said Mr Hanly had voluntarily chosen to sell the property himself and the redemption payment had come into operation in accordance with the society's rules.