Allied Irish Banks is fighting a six-figure claim from an English business couple who claim that £160,000 went missing from their account in London. The bank is accused of not enforcing adequate "checks and balances" internally, leading to money being "misappropriated" from the couple's accounts.
Mr Gordon Lewis (64), a former builder, and his ex-wife, Patricia, say £160,000 went missing from their account at AIB's London Mayfair branch. Mr and Mrs Lewis, who are now divorced, from Hertfordshire, England, seek in a civil action against AIB the return of the money they claim is missing. They say they discovered the money was missing only in 1988, when they were in the middle of divorce proceedings and were trying to reach a settlement.
The manager of the Mayfair branch at the time, Mr Timothy McHale, retired a year later and now lives in Lahinch, Co Clare.
The bank denies liability and is counter-suing the couple for £85,000 in unpaid loans. AIB claims the money is outstanding mortgage arrears on the couple's home. Mr and Mrs Lewis have not been able to sell the home because of the bank's claim. The two claims will be heard together.
The results of an internal investigation by the bank will not have to be put forward after the judge ruled such evidence inadmissible.
Ms Judith Jackson, counsel for Mr and Mrs Lewis, told the hearing at Central London County Court that the internal checks and balances in the bank "facilitated misappropriations of funds either fraudulently . . . or negligently by its employees". She told the court the report's disclosure would reveal the existence of such misappropriations.
Ms Jackson's request, in written submissions, to admit the investigation results was refused by the judge, Mr Michael Rich, who said it would not further her clients' case. In legal argument, Ms Jackson also asked for copies of the other accounts held at the branch at the same time as the Lewises'. Asked by the judge to give examples of the bank's alleged negligence, she replied: "The lack of record-keeping and the operation of some of its accounts." Asked how the disclosure of the bank's record would help her clients' case she replied: "If these accounts demonstrate the same errors and omissions that occur in this account [that of Mr and Mrs Lewis]."
Mr McHale will not have to give evidence during the five-day hearing, as he lives outside British jurisdiction. The judge, sitting without a jury, will rule on three questions: whether funds were paid into several accounts held by Mr Lewis and his ex-wife in London and the Isle of Man; when the funds were paid in and by whom; and where the cash is now.
He will also decide on liability for the outstanding £85,000 which the bank says it is owed. Mr Lewis is expected to testify today.