AIB appeals decision to allow damages claims over failed Belfry

An appeal has been brought against a High Court ruling which cleared the way for the trial of hundreds of damages actions brought by investors who invested in property funds promoted by AIB.

In a judgment last April on a preliminary issue affecting some 300 actions over the Belfry Funds, Mr Justice Robert Haughton held that while some elements of the claims were statue barred, other aspects of the cases could proceed.

The investors have sued over losses sustained after they put money into five Belfry funds which invested in commercial property in the UK.

They allege the funds were promoted between 2002 and 2006 by AIB and five directors of various companies in the Belfry Properties group, including property investor Tony Kilduff and a former head of AIB private banking, John Rockett.

The defendants, who deny the claims against them, have appealed the judgment on the preliminary issues to the Court of Appeal. The appeal will be mentioned the Court of Appeal early next month.

The cases were briefly mentioned before Mr Justice Brian McGovern on Monday who adjourned the matter to a date in October.

In their claims, the investors say they invested anything between €75,000 and €440,000 in the funds between 2002 and 2006. Following the collapse of the funds, they initiated claims seeking damages.

They claim the defendants were negligent, acted in breach of contract and in breach of fiduciary duty in the manner in which they operated the funds. The claims are denied.