THE Supreme Court yesterday affirmed the High Court's dismissal of an action brought by a former Stormont MP, Mr Patrick Kennedy, and another businessman who claimed £5 million for loss of profits and damages against AIB.
The claim arose from transactions concerning construction projects. The court also dismissed an appeal by the two men and their three development companies against a counter-claim by AIB which had been allowed by the High Court.
Mr Kennedy, Monaloe Avenue, Blackrock, Co Dublin; Mr Hugh McGill, Zion Road, Rathgar Dublin; and three companies in which they are shareholders - Methuen Park Investments Ltd Cargagh Construction Ltd and Towerlough Properties Ltd sued Allied Irish Banks plc and AIB Finance Ltd.
The plaintiffs claimed AIB Finance agreed to lend Methuen £250,000 and failed to do so and that AIB plc agreed to provide or continue an overdraft facility of £100,000 in favour of Towerlough but failed to do so. As a result, it was claimed, they suffered damage amounting to approximately £5 million.
In the High Court, Mr Justice Murphy had stated there was a partnership between Mr Kennedy and Mr McGill. Central to their activities was a site at Cabinteely, Co Dublin, owned by Methuen, where it was intended to build 50 houses.
Towerlough bought O'Meara's Hotel, Nenagh, Co Tipperary, in October 1990 and needed £100,000 for refurbishment.
The High Court had given judgment in favour of AIB plc on its counter-claim for varying sums totalling £790,000.
