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...