ACC BANK has secured judgment for €2.3 million against a solicitor as part of a settlement of proceedings over his alleged failure to honour undertakings aimed at ensuring the bank had security for loans advanced to two clients.
Mr Justice Peter Kelly was told yesterday by Eoin McCullough, for ACC, that proceedings brought against Pádraig J Butler, practising as Butler Solicitors, Lower Patrick Street, Kilkenny, had been settled on terms handed into court.
Counsel added that there were outstanding issues between the bank and the Solicitors’ Mutual Defence Fund.
The judge noted the settlement provided for judgment for €2.31 million, plus costs, against Mr Butler and for a stay on registration and execution of that judgment until Thursday next.
If the defendant produced an affidavit on that date showing inability to pay, the stay on registration and execution of judgment would continue to September 15th, 2009, the judge noted.
ACC had brought the proceedings arising from undertakings related to various loans made by it to Séamus and Eugene McKenna, c/o APX Ltd, Milford Cross, Co Carlow.
The bank alleged Mr Butler failed to honour undertakings to lodge with ACC the proceeds of the sale of units being built by the McKennas at Fiddown, Co Kilkenny, in reduction of the bank’s loan to them.
The bank has taken separate proceedings against the McKennas relating to the loan, while Mr Butler also initiated proceedings against them.
In its action against Mr Butler, the bank claimed it advanced loans to the McKennas in 2004 and 2005 and that some €2.3 million was now due and owing, but this had not been repaid.
The bank claims that, in April 2005, its solicitors wrote to Mr Butler asking him to confirm that the sale proceeds of each unit would be lodged with the bank in reduction of the loan facilities to the McKennas.
On May 9th, 2005, Mr Butler confirmed that would be the case, it was alleged.
In March 2008, the bank claims it demanded repayment from the McKennas, who failed to pay.
The bank claims Mr Butler also failed to comply with his undertakings and, in those circumstances, had to compensate the bank for its losses arising from his alleged failure.
