Application for €1.7m judgment against Bernard Somers adjourned ‘for mention’

A summary judgment application for €1.7 million against former AIB and Central Bank director Bernard Somers in relation to a loan secured on various assets, including his home in Foxrock, Dublin, "hopefully will not trouble" the Commercial Court, a judge has been told.

Launceston Property Finance DAC issued a demand on October 4th last for repayment, within two days, of some €1.76 million allegedly outstanding on a €3.62 million loan. The fund says it was not paid.

Last November, the application for judgment was adjourned until this month during which time talks have been taking place between the sides.

On Monday, Gary McCarthy SC, for Launceston, asked that the matter be adjourned for mention to Tuesday as it would “hopefully not trouble the court”.

Mr Justice Brian McGovern agreed to adjourn the matter.

Outstanding issues

The court was also told in November that Launceston would know by March 12th if Mr Somers was “as good as his word” and if there were any outstanding issues of dispute.

Launceston’s proceedings are for summary judgment against Mr Somers and his wife Marguerite, of Old Bawn, Kerrymount Avenue, Foxrock.

It arises from a 2010 loan for €3.62 million made by Anglo Irish Bank Corporation Ltd to the couple. The fund accepts Ms Somers' liability was limited to her interest in their home, described by the fund as a "very valuable" asset.

After Anglo's collapse the loan was transferred to Irish Bank Resolution Corporation and acquired by the fund in 2014.

Alleged failures

Launceston claims the loan was not drawn down for purchasing a family home but that the couple’s home was security for it.

The fund claims it had engaged with the couple over alleged failures to make repayments in line with the loan facility terms. It claims certain repayments were made and, following lengthy negotiations, a debt repayment strategy was agreed in July 2015 which involved the €1.54 million proceeds of sale of a property at Upper Mount Street in Dublin being paid to the fund.