Businessman Dómhnal Slattery has sued Friends First Life Assurance Company over allegedly threatening to pursue him for almost $10 million under an alleged guarantee over funds issued to buy a hotel in the United States.

The case relates to a $14.05 million loan advanced by Friends First to Claret Capital in March 2008 via a promissory note to fund the purchase of the St Regis Hotel in Washington DC.

In the action, which opened before the Commercial Court yesterday, Mr Slattery, Ailesbury Road, Ballsbridge, Dublin 4, the chief executive of Avolon Airspace Ltd, claims Friends First threatened to sue him and also moved to discredit and undermine him with Avolon shareholders and others.

This occurred after he refused to consent to rectification of a July 2009 deed which allegedly limited Friends First’s recourse to him, he alleged.

He claimed the July 2009 deed provides Friends First with limited recourse to him arising from his alleged guarantee of March 2008.

This related to a promissory note via which Friends First advanced about $9.5 million to Claret Capital Holdings LLC, a Delaware company, towards the purchase of the St Regis Hotel.

He wants a number of declarations, including that he is not personally indebted to Friends First for $9.9 million plus interest and that Friends First’s recourse is strictly limited to the value of 256 shares in a company called Jetbird Ltd, an aviation firm launched by Mr Slattery.

Mr Slattery has also claimed damages for alleged breaches of confidence, privacy and duty.

Mr Slattery, represented by Brian O’Moore SC and Eoin McCullough SC, claims, since April 2011, that solicitors for the defendant had made a number of threats to take legal proceedings against him.

It is claimed Friends First said they would not sue Mr Slattery if he consented to rectification of a Deed of Pledge dated July 2009 or paid friends First €9.9 million allegedly owed.

The claims are denied.