Bank Denied Summary Judgment On Foot Of Ex-Partner's Guarantee For 'Emotionally Transmitted Debt'

Mr. Justice Barrett has referred summary judgment proceedings to plenary hearing in circumstances whereby a bank are seeking to rely on a personal Guarantee entered into by the ex-partner of a man who did not explain to her what she was signing.

Background

Ms. Geraghty was in a romantic relationship with the Third Named Defendant in the proceedings, Mr. James Kearney, who set up his own construction business in 1999. Mr. Kearney suggested that Ms. Geraghty become a 49% shareholder after persuading her to invest the sum of17,500 in the company, Rostaff Property Development Limited (the Company). The romantic relationship ended in November 2013 and Mr. Kearney asked Ms. Geraghty to sign over her shares to his nephew. It transpired that some of the documents executed by her at this time constituted a personal Guarantee to AIB for all monies owed by the Company to the Bank. Ms. Geraghty does not deny that it is her signature on the guarantee documents, however, she states that she did not...