Anglo secures judgments of over €65m against three solicitors

ANGLO IRISH Bank has secured judgments totalling more than €65 million against three solicitors arising from guarantees related to loans to companies and partnerships linked to the Limerick-based Fordmount property group.

The solicitors previously indicated to Anglo they are unable to pay such sums.

Dermot O’Donovan, Michael Sherry and Aidan Frawley, all partners in the Limerick-based firm Dermot G O’Donovan Partners, consented at the Commercial Court yesterday to orders for €21.7 million against each of them. A fourth partner in the firm, Thomas Dalton, previously consented to summary judgment against him for €21.4 million.

On the application of Maurice Collins, for Anglo, Mr Justice Peter Kelly granted the judgments and also awarded costs against the three in favour of Anglo.

The three previously argued they had a defence to the bank’s claim for summary judgment against them on grounds including that assurances were given by Anglo officials to Mr Daly that their guarantees over certain loans would never be relied upon, and the full hearing of that action was listed for next January but will not now proceed.

A separate action in which Anglo is seeking €86 million judgment orders against Fordmount group managing director Michael Daly is proceeding in January, Mr Collins said.

In opposing that action, Mr Daly has claimed he was regarded as a favoured developer by Anglo which told him his guarantees over loans would never be relied upon and that he had access to loan funds of more than €650 million. He has also made various claims against the firm of Dermot G O’Donovan Partners.

The three solicitors had claimed they believed the guarantees were “a box-ticking exercise” for Anglo’s credit committee. They also said they believed Mr Daly had a special status with Anglo, having been taken on several golfing trips by the bank including one of “huge cost” involving travel on the Orient Express.

Anglo had described the solicitors’ claims as “incredible”.

The proceedings arise from unpaid loans of more than €165 million advanced by Anglo to three companies in the Fordham property group and two partnerships to buy lands and buildings in and around Limerick city and county for development.

Mr Daly has alleged the four defendant solicitors were involved in some of the deals and had provided guarantees but wanted their identities kept secret. He has also claimed Dermot G O’Donovan Partners was at all times the legal adviser to the Fordmount property group and his own personal legal adviser. Any loans entered into by the partnerships were done so as partners and any guarantees were on the basis of five guarantors, he has claimed.

Anglo contends Mr Daly was a director at all material times of Fordmount Property Group Ltd, Fordmount Developments Ltd and Fordmount Developments (Savoy) Ltd. It also claims he was a 50 per cent partner of the Fordmount Partnership and the St Munchin’s House Partnership, Limerick.