ACCBANK IS seeking summary judgment orders for some €2.3 million against two men over alleged unpaid development loans.

The Commercial Court had last March ruled that the bank was entitled to judgment in the same amount against the men’s solicitor, Pádraig J Butler, practising as Butler Solicitors, Lower Patrick Street, Kilkenny, over his failure to honour undertakings aimed at ensuring the bank had security for the loan.

A stay was placed on registration of that judgment until September next and the court was told it was hoped to resolve issues with Mr Butler’s insurers, the Solicitors Mutual Defence Fund.

The insurers had said they will not indemnify Mr Butler and the bank claims it is entitled to proceed against the borrowers, Séamus and Eugene McKenna.

Eoin McCullough SC, for ACC, applied yesterday to admit to the Commercial Court list the summary judgment application against Séamus McKenna, Farrenboley Park, Dundrum, Dublin, and Eugene McKenna, Dunbell Big, Madoxtown, Co Kilkenny.

Mr McCullough said the bank believed it was unlikely it would recover the sums due against Mr Butler and wished to proceed against the McKennas, to whom the loans were issued.

Counsel for the McKennas argued that there was a defence to the summary judgment application arising from the bank having already succeeded against Mr Butler. Mr Justice Peter Kelly noted he had not been referred to any legal authority to support such an argument and listed the summary judgment application for Friday.

In its action, ACC outlined how the proceedings arose from loans advanced to the McKennas on dates from 2004, including loans related to a development at Fiddown, Co Kilkenny.

ACC said it had obtained judgment against Mr Butler but had to proceed against the McKennas because Mr Butler’s insurers have refused to indemnify him over his failure to honour the undertakings.