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

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

The High Court erred in applying the parol evidence rule to exclude evidence of a collateral contract; credible affidavit evidence from Mr Cuddy and Mr Comerford raises an arguable defence that recourse under the guarantee was limited to the Oranmore warehouse. Summary judgment is inappropriate where such a defence exists.

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 High Court Summary Judgment
Outcome
Appeal allowed; High Court summary judgment set aside.
Legal Topics
Guarantees, Collateral Contracts, Parol Evidence Rule, Statute of Limitations
Contract Law Banking Law Guarantees Collateral Contracts Parol Evidence Rule 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 High Court Summary Judgment

Legal Issues

  1. 1 Whether the claim under the guarantee is statute-barred
  2. 2 Whether a collateral contract limiting recourse to the Oranmore warehouse exists
  3. 3 Admissibility of oral evidence to establish collateral contract

Ratio Decidendi

The High Court erred in applying the parol evidence rule to exclude evidence of a collateral contract; credible affidavit evidence from Mr Cuddy and Mr Comerford raises an arguable defence that recourse under the guarantee was limited to the Oranmore warehouse. Summary judgment is inappropriate where such a defence exists.

Court Disposition

Appeal allowed; High Court summary judgment set aside.

Orders

  • AIB’s claim remitted for plenary hearing limited to the Limited Recourse Ground.
  • Leave to defend granted to Mr Cuddy on the Limited Recourse issue only.