ACC BANK has secured summary judgment for €4.3 million against a businessman over his failure to repay loans provided to buy properties in Dublin.
James Jordan, described in court as an experienced property developer and owner of 29 properties, contended the bank was not entitled to summary judgment on grounds including it always knew repayment of the loans depended on property being developed and sold on. But Mr Justice Peter Kelly ruled yesterday he had no arguable defence to the bank’s claim.
Mr Jordan, Laochfail, Outfarm Lane, Castleknock, Dublin, claimed the bank was fully aware the biggest loan of €2.87 million was “purely speculative” and his intention was to build and sell other substantial houses on 1.7 acres of land surrounding his five-bed detached home.
The bank always knew this was the only way the loans could ever be paid back, his counsel, Jarlath Ryan, submitted. Mr Jordan, counsel said, was a self-made man with no formal education who believed a promise was made to him by ACC on foot of which he acted, including spending €80,000 on fees towards securing planning permission.
Counsel for ACC argued nothing advanced on behalf of Mr Jordan disentitled the bank to summary judgment. Mr Jordan was commercially savvy and an experienced property speculator.
In May 2004, ACC loaned Mr Jordan €2.87 million to buy his home at Outfarm Lane, plus an additional loan of €200,000 to refinance a commercial property in Coolmine Industrial Estate in Blanchardstown, the court heard. In June 2004, it loaned him €305,000 to refinance a residential investment property at Luttrellstown Walk, Castleknock, and to buy another Outfarm Lane site.
In July 2004, the bank gave him further loans of €300,000 to buy an investment property at Eden Court, Dunshaughlin, Co Meath, and €505,000 to buy two commercial properties at Base Park, Mulhuddart, and to refinance an investment property at Charlemont Place, Dublin.
The bank claimed repayments on all loans were missed or made on an intermittent basis and Mr Jordan fell into arrears. On August 25th last, the bank demanded repayment of €4.3 million together with interest.
Granting the bank summary judgment for €4.34 million, plus costs, against Mr Jordan, Mr Justice Kelly said Mr Jordan claimed the bank was aware his liability could not be met unless “substantial” houses could be built and sold on the Outfarm Lane site.The only basis on which he was making that claim arose out of conversations with ACC, after he received the loans, and these could not amount to reasons for blocking the bank’s claim, the judge ruled.
