A bank has obtained a €3.7 million judgment against a former partner in the liquidated Bloxham stockbroking firm.
Danske Bank secured the judgment against Patrick Finnegan, former partner and head of private clients at Bloxham, arising from his personal guarantee of liabilities of his company, PTF Securities.
Those liabilities arose from a restructuring arrangement in which the partners at Bloxham were each asked to set up individual companies to purchase an equity stake in the firm, said John Donnelly, for the bank, at the High Court.
Mr Finnegan's company, PTF Securities, secured a loan, personally guaranteed by Mr Finnegan, to acquire the equity in Bloxham, the court heard. When Bloxham "went down", the bank's only recourse was to Mr Finnegan's personal guarantee, Mr Donnelly said.
In an affidavit opposing the bank's application, Mr Finnegan said if judgment was granted in the sum sought, it would affect his ability to earn a livelihood. President of the High Court Mr Justice Nicholas Kearns said the same could be said of every person against whom a judgment is granted.
Counsel for the bank said Mr Finnegan had made no arguable case against the bank’s application for judgment and had merely raised “small, technical points” in opposing it.
In submissions, counsel for Mr Finnegan denied the points raised were small or technical and said he had an arguable defence on grounds including that the bank had not served notice of the demand on Mr Finnegan in accordance with the relevant notice terms.
In his ruling, Mr Justice Kearns said he was satisfied no arguable defence was made to the bank’s application. Mr Finnegan was an experienced businessman with a stake in Bloxham and who agreed to enter a guarantee for a significant sum, the judge said. There was no issue but that he executed that guarantee and had independent legal advice when he did so.
Judgment was now being sought on the basis the €3.7 million was outstanding and demand had been made for payment of that sum, he said.