Recent Interesting Decisions From The Irish Courts In A Number Of Banking Cases (February 2014)

BANK OF IRELAND V PHILIP STAFFORD, PAULA STAFFORD AND MARIAN STAFFORD [2013] IEHC 546

Bank of Ireland (the "Bank") took an action against the three Defendants and the estate of the Third Defendant's late husband (the "Deceased") for €5,358,026.12 on foot of a facility letter under which the three Defendants and the Deceased were jointly and severally liable.

The First and Second Defendants settled the Plaintiff's claim against all of the Defendants by paying the sum of €3,506,776.06 plus interest and costs to the Bank . The First and Second Defendants then pursued the Third Defendant and the estate of the Deceased by way of indemnity and contribution.

The Third Defendant argued, on behalf of the estate of the Deceased, that pursuant to the Civil Liability Act 1961 (the "Act"), the claim had to be brought within 2 years of the Deceased's death, being a claim that survived against the Deceased's estate.

Mr. Justice McGovern followed the case of Bank of Ireland -v- O'Keeffe1 in which Baron J held that the Plaintiff's claim on foot of a guarantee made against the estate of a deceased was not time barred since the demand was made after the death of the deceased and it was not a claim what survived against the deceased's estate therefore the two year limitation did not apply.

In the instant case the demand for repayment was made after the Deceased's death and was not a claim subsisting at his death or one that survived against the Deceased's estate within the meaning of the Act. The monies did not fall due and were not repayable at any time prior to the Deceased's death. Mr. Justice McGovern held that the claim for contribution or indemnity against the Deceased could only arise after the Plaintiff lawfully demanded repayment of the loan and therefore the claim was not time barred.

NATIONAL ASSET LOAN MANAGEMENT LIMITED V TOM COYLE [2013] IEHC 606

The National Asset Loan Management Limited ("NALM") applied for summary judgment on foot of facilities advanced by Anglo Irish Bank Corporation Limited ("Anglo") to Tom Coyle. This case is unusual in that Mr Justice McGovern granted NALM summary judgment but remitted the issue of what interest was applicable to the Defendant's loans to plenary hearing. The Defendant averred that the incorrect rate of interest had been applied to his loan accounts and this view was supported by an accountant who had sworn an affidavit to that affect. Although NALM disputed this claim, Mr Justice McGovern concluded that...