ACC BANK has sued a solicitor over alleged breach of undertakings aimed at ensuring the bank had security for a €1.4 million loan advanced to a couple.
ACC is suing Liam A Gallagher, practising as Liam Gallagher Co Solicitors, Upper Abbeygate Street, Galway, for alleged breach of undertaking to register securities over a €1.4 million loan drawn down by Maurice and Angela McDonagh to buy a site at Gortacleeva, Bushy Park, Co Galway, on which a holiday home was to be built.
The bank claims the couple drew down €1.4 million between April 29th and May 12th, 2005. It is claimed the security for the loan was to be the Bushy Park property and a second legal charge in favour of ACC over a house owned by the couple at Charlestown Road, Ranelagh, Dublin. It is alleged Mr Gallagher undertook to discharge the loan from proceeds of sale of the Ranelagh house or, if the property was not sold, to register a second legal charge over it in favour of ACC. The loan balance outstanding in November 2008 was some €1.44 million. The bank claims it learned that same month that the Ranelagh house was sold in October 2005 for €2.2 million. The loan was not discharged from the proceeds of sale, it claims.
On the application yesterday of Bernard Dunleavy, for ACC, Mr Justice Peter Kelly admitted the case to the Commercial Court list.