AIB seeking €18m judgment against Corrandulla businessman

A Cprrandulla businessman is being pursued by Allied Irish Banks for €18 million summary judgment orders over unpaid loans allegedly advanced for property developments in Galway, property investment in New York and a bloodstock business.

Because of defects in the bank’s legal documents, Mr Justice Peter Kelly adjourned the bank’s application for transfer of the proceedings against Joseph Joyce and his company Cahermorris Developments Ltd to the Commercial Court to this morning (Thursday. )

AIB is seeking summary judgment for some €2.9 million against the company, with registered offices at Cahermorris, Corrandulla, Co Galway, and is also claiming some €18 million against Mr Joyce, of the same address.

The claims arises from various loans advanced to the defendants over a six-year period.

Gary McCarthy, for the defendants, said the bank had not exhibited the correct loan facility letter to ground its claims that €18 million was due from Mr Joyce.

Dermot Cahill, for AIB, said it appeared the loan facility was changed about September 2009 at the request of Mr Joyce to reduce the loan security from 75 acres of lands to 60 acres.

The judge said he would not transfer the proceedings on the current state of the papers and adjourned the matter. It was “very strange” for a bank to seek €18 million on an incorrect basis, he remarked.

In its proceedings, AIB claims the €18 million sum is due and owing by Mr Joyce arising from loans advanced for the defendant’s commercial activities in construction/development and in bloodstock while the €2.9 million claim against the company related to various facilities over a six year period.

The loans were advanced to acquire and develop a 12.5 acre site at Headford Road, Galway city and a 17 acre site in Mountbellew, Co Galway. Facilities were also provided for Mr Joyce’s bloodstock business at Corrandulla.

 

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