Man alleges breach of duty of care by AIB

A man who permitted some €346,000 to be withdrawn from his Allied Irish Banks accounts over time to help out his then accountant Gerard Killally, a former Fianna Fáil councillor since adjudicated bankrupt, has sued AIB alleging it breached a duty of care to him.

Joseph Delaney, Carbury, Co Kildare, said in an affidavit he had returned to his native Edenderry after 23 years working in construction in the UK, set up a plant hire business and had about €430,000 in accounts in 2007.

He had no banking skills and left all those matters to his wife, he said. He said Mr Killally was his accountant over a period of years and when Mr Killally asked him for financial help in August 2008, he had in good faith agreed.

In September 2008, staff at AIB had queried a withdrawal of money from accounts held by him and his wife in favour of Mr Killally and, when he asked Mr Killally about this, Mr Killally had denied there was anything wrong, Mr Delaney said in an affidavit.

Mr Killally had also offered to give him a lease over a premises in Edenderry and that lease was later signed by him.

Immediately lodged
He had later learned that, when bank drafts from his and his wife's AIB accounts were signed in favour of Mr Killally, the money would be almost immediately lodged to Mr Killally's accounts with AIB, Mr Delaney said.

Only when the accounts were almost empty had AIB inquired about the nature of the withdrawal of the funds, he claimed.

He had later attempted to set up a business in the Edenderry premises leased to him by Mr Killally on which his loan to Mr Killally was secured but AIB told him he had to leave that premises.

Mr Delaney said he had “lost everything” and felt humbled and degraded at his treatment after years of banking with AIB. He had never given AIB any reason to treat him like that and believed the bank had breached its duty of care to him, he said.

In July 2009, AIB had secured judgment orders for some €15.5 million against Mr Killally, he also said.

The National Assets Management Agency had since appointed receivers over the premises leased to him by Mr Killally and he was concerned it would be sold.

Mr Justice Paul Gilligan yesterday granted leave to Mr Delaney, who was assisted by a friend in presenting his case, to serve short notice of his proceedings on AIB and on the receivers appointed over the Edenderry premises.

When the judge recommended to Mr Delaney that he should get legal assistance, he said he had no money to do so.