ACC get tough in legal action in separate cases against two Galway businessmen

ACC Bank have shown this week that they are taking no hostages over two separate instances with Galway businessmen.

In the first case ACC is suing Liam A Gallagher, practising as Liam Gallagher Co Solicitors, Upper Abbeygate Street, Galway, for alleged breach of undertaking to register securities over a loan taken out by Maurice and Angela McDonagh.

The loan was in order to buy a site in Bushypark, on which a house was to be built. The loan for €1.4 million was withdrawn by the couple over a two week period in April and May 2005.

The security for the loan was to be the Bushypark property, and a home owned by the couple in Ranelagh, Dublin. It is alleged Gallagher undertook to clear the loan from proceeds of sale of the Ranelagh property.

The bank claim it learned in November 2005 that the house in Dublin had been sold the previous month for €2.2 million, yet the loan was not cleared from the proceeds. It was Mr Gallagher’s responsibility to inform the bank of the sale and to ensure that the loan was cleared. For failing to do so and on the application of Bernard Dunleavy, for ACC, Mr Justice Peter Kelly has admitted the case to the Commercial Court list.

In a separate case ACC may apply to the Commercial Court to have Galway builder James Clancy jailed. Mr Clancy is alleged to have failed to comply with an order to disclose all relevant details of his business affairs to the bank following a previous court order.

The Furbo man undertook before the court on Tuesday he would provide the information sought. Mr Justice Brian McGovern granted the bank to bring a motion, returnable to next week, for the attachment and commital of Mr Clancy over his failure to comply.

ACC had previously secured judgment for €3.4 million against Mr Clancy over unpaid loans from ACC Asset Finance for a machine used for the manufacture of prefabricated polystyrene houses.


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