Drumm seeks damages for 'mental distress'

 

Anglo Irish Bank and its former CEO David Drumm have still failed to reach any agreement which would resolve the bank’s action against him over unpaid loans of more than €8 million, the Commercial Court heard today.

In those circumstances, although discussions between the sides are continuing, the action will proceed in October as listed, Mr Justice Peter Kelly was told by John Hennessy SC, for Anglo, today.

Mr Drumm had made a number of proposals to the bank in an effort to settle the action and it had rejected those and made a counter-proposal to him on July 14th. To date, however, the sides have failed to reach a settlement agreement.

The full hearing of the bank’s proceedings against Mr Drumm is scheduled to open on October 26th.

Mr Drumm, who resigned in December 2008 as CEO of Anglo, claims the bank’s demand for immediate repayment of the January 2008 loans breaches loan agreements and has counter-claimed his employment was not validly terminated in early 2009.

He claims Anglo owes him some €2,620,695 in salary, pension and deferred bonus payments and also wants damages, including damages for “mental distress”.

After the loans action concludes, the court is due to tear Anglo’s action against Mr Drumm and his wife Lorraine to set aside Mr Drumm’s transfer of the family home at Abbington, Malahide, Co Dublin, to his wife. Anglo claims the transfer is a fraud on creditors but the couple, now living in Cape Cod, US, claim it was for “taxation reasons”.