A DOCTOR is not entitled to be released from a guarantee given by him over a €3.4 million bank loan obtained to redevelop an old hospital as a modern medical facility, the High Court has ruled.
Dr Neil Healy, Lough Sheever Corporate Park, Mullingar, Westmeath, had planned to develop the facility at Coole in Westmeath in 2005 with a medical colleague. They secured the €3.4 million loan from Ulster Bank Ireland with both providing guarantees for the borrowings.
Following disagreements, they later agreed in 2007 to terminate the arrangement, with Dr Healy receiving €2.2 million and his former partner taking over the assets and liabilities of the partnership. The bank claimed Dr Healy’s liability for the original loan was still in place and in August 2008 it had deducted €667,210 from the €2.2 million against the balance outstanding on the €3.4 million.
Dr Healy claimed the bank had no right to do that. He said he had been informed by the Mullingar branch “relationship manager” Alan Leech that he was “in the clear” in relation to the partnership.
In his High Court action, he claimed Ulster Bank wrongfully set off the money against the loan.
Yesterday, Mr Justice Brian McGovern ruled against Dr Healy.
Dr Healy had claimed that after Mr Leech told him he was “in the clear” in relation to his liability for the Coole project, he had then deposited the €2.2 million with Ulster Bank.
Mr Leech told the court he did not make any such representations and could not have without sanction from the bank’s credit control section.
Mr Justice McGovern said he accepted Mr Leech’s evidence. Any assurance would have been a breach of well-established bank procedures in circumstances where Dr Healy had “very substantial liabilities” to the bank.
The judge described as “quite improper” the secret recording by Dr Healy of discussions he had with bank officials, including a recording in the doctor’s surgery when a bank official brought his son there as a patient.
The doctor also secretly recorded a conversation between him and Mr Leech in his surgery and the judge said Dr Healy sought to manipulate the discussion into getting Mr Leech to say he was relieved from the guarantee.
Dr Healy had also sought to present an “inaccurate and misleading” scenario claiming he had documented evidence he had been released from the guarantee, the judge said. He found Dr Healy was “lacking in candour and credibility” while Mr Leech was a “creditable” witness.