THE COMMERCIAL Court will rule next month whether businessman Philip Lynch and his family have any liability to AIB for a €25 million loan issued to them to buy development lands in Waterford.

The case opened last December, evidence ended last May and legal submissions were heard in June after which Mr Justice Michael Peart reserved judgment on the 27-day hearing. He indicated yesterday he expected to give judgment on November 15th.

The legal costs of the case are expected to amount to several million euro.

Mr Lynch, his wife and four children – Judith, Philippa, Therese and Paul – brought proceedings against AIB and two law firms – LK Shields and Matheson Ormsby Prentice – in an effort to avoid AIB pursuing them over the €25 million loan of February 8th, 2007.

The loan was issued to the family and developer Gerry Conlan to buy 86 acres at Kilbarry, Waterford, for development. The bank has brought separate proceedings against Mr Conlan over the loan.

The final loan document was signed by Judith Whelan, daughter of Mr Lynch, on behalf of the family, the court previously heard. An earlier draft facility contained a special condition providing for recourse to Philip Lynch and Mr Conlan but that special condition was removed from the final loan facility with the effect, AIB claimed, of giving it recourse to all borrowers for the €25m.

The Lynch family claimed they always understood the loan would involve AIB having no recourse to them individually for payment and its recourse would be limited to the lands. The court heard the current value of the lands has been estimated about €4 million while in 2007 values as high as €80 million were suggested.

The family alleged the defendants were negligent in relation to how they dealt with the loan.

The defendants denied those claims.