Commercial Court fast-tracks breach of contract case against BOI

A company claims a bank invalidly interfered with its redevelopment of a Dublin office block, for which it had got a €40 million loan, when a receiver was appointed to its affairs.

Morrentino Ltd is claiming breach of contract against Bank of Ireland and BoI Private Banking Ltd arising out of the loan to the company in 2011 for refurbishment and leasing out of a commercial building, Cumberland House, Fenian Street.

It wants the Commercial Court to declare the appointment of the receiver was invalid and the BoI defendants are not entitled to a €3 million redemption fee on the loan which the company had paid.

It seeks a number of declarations including that the property was devalued by the actions of BoI in failing to co-operate with Morrentino in completing the refurbishment works. It was also devalued because the defendants failed to co-operate in securing tenants for the property, it is claimed. Damages are also sought.

Mr Justice Brian McGovern agreed to fast-track the case in the Commercial Court list.