Former City trader blocks €6m summary judgment

High Court rules Peter Lavelle has arguable defence to claim by Stapleford over Anglo loans drawn down to invest in Quinlan Private deals

A financial fund has been refused summary judgment for almost €6 million against a financial markets trader after the High Court ruled he was entitled to a full hearing of the claim.

Ms Justice Marie Baker found Peter Lavelle, whom she described as a trader in the city of London for 11 years who had accumulated considerable wealth, had made out an arguable defence to the claim by Stapleford Finance Ltd.

The claim relates to monies loaned by Anglo Irish Bank to Mr Lavelle between June 2006 and December 2007 for property investments. The loans were transferred to IBRC after Anglo's collapse and were later acquired by Stapleford.

IBRC in June 2013 demanded payment of monies due. It is alleged no payment was made on foot of the demand and Stapleford later sought summary judgment for more than €5.9 million.

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In opposing summary judgment, lawyers for Mr Lavelle, who returned to live in Ireland in 2005 and continued working as a trader online, accepted the loans were drawn down but submitted he had an arguable defence.

Among the grounds of defence were he was a consumer within the meaning of consumer credit legislation and European law, provisions of consumer legislation were not complied with by Stapleford’s predecessor in title to the loans and this rendered the loans unenforceable.

Ms Justice Baker ruled Mr Lavelle had made out an arguable defence on several grounds entitling him to a full hearing.

He had made out an arguable defence he could have been a consumer in respect of the loans and also had an arguable defence concerning calculation of interest due on the loans which he said was penal and distorted, she held.

Issues relating to proof of assignment of the loans and the statue of limitations could not be raised as defences to the claim, she also held.

Earlier, the judge noted Mr Lavelle established a relationship with Anglo in 2006 and, after seeking advice from Anglo's Wealth Management Division, was introduced to Quinlan Private through which he invested in several commercial transactions promoted by that fund.

Instead of investing his own funds, Mr Lavelle, based on tax advice, kept substantial funds on deposit with Anglo in the Isle of Man until he became resident in Ireland in 2008, had borrowed monies from Anglo to fund certain investments.

The loans were in respect of what were described as Quinlan Private investments in Dublin, Bulgaria, Germany, the Jurys Hotel deal, as well as monies for investment in investments promoted by Davys and Anglo Irish Bank itself, the judge noted.

The monies borrowed were for investments in “safe pension type investments to secure his family’s future”, she added.