Allied Irish Bank Plc v Cuddy (Unapproved) [2020] IECA 211 (30 July 2020)

Allied Irish Bank Plc v Cuddy (Unapproved) [2020] IECA 211 (30 July 2020)

The Court of Appeal held that Mr Cuddy had no arguable defence on the limitation ground, as demand was made within the limitation period, but that he had established an arguable defence on the collateral contract (limited recourse) ground based on credible affidavit evidence, warranting a plenary hearing. The High Court erred in excluding this evidence under the parol evidence rule.

Citation
[2020] IECA 211
Parties
Plaintiff/respondent: Allied Irish Bank PLC; Defendant/appellant: Sean Cuddy
Jurisdiction
Ireland
Judgment Date
30 July 2020
Procedural Posture
Civil Appeal / Appeal From Summary Judgment in High Court to Court of Appeal
Outcome
Appeal allowed in part
Legal Topics
Guarantee Enforcement, Collateral Contract, Parol Evidence Rule, Summary Judgment, Statute of Limitations
Contract Law Banking Law Civil Procedure Guarantee Enforcement Collateral Contract Parol Evidence Rule Summary Judgment Statute of Limitations

Case Brief

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Parties

Allied Irish Bank PLC

Plaintiff/respondent

Sean Cuddy

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Summary Judgment in High Court to Court of Appeal

Legal Issues

  1. 1 Whether the defendant has an arguable defence to summary judgment on the basis of (a) the claim being statute-barred, and (b) an alleged collateral contract limiting recourse to a specific asset (the Oranmore warehouse)

Ratio Decidendi

The Court of Appeal held that Mr Cuddy had no arguable defence on the limitation ground, as demand was made within the limitation period, but that he had established an arguable defence on the collateral contract (limited recourse) ground based on credible affidavit evidence, warranting a plenary hearing. The High Court erred in excluding this evidence under the parol evidence rule.

Court Disposition

Appeal allowed in part

Orders

  • High Court summary judgment set aside
  • AIB’s claim remitted for plenary hearing limited to the Limited Recourse Ground (collateral contract)