Whelan & ors -v- Allied Irish Bank Plc & ors [2014] IESC 3 (30 January 2014)

Whelan & ors -v- Allied Irish Bank Plc & ors [2014] IESC 3 (30 January 2014)

The Supreme Court held the facility letter unambiguously imposed joint and several liability on all borrowers, including the plaintiffs. There was no evidence of actionable misrepresentation by the bank or solicitors. The solicitors' retainer was limited and did not extend to advising on the recourse nature of the loan. The plaintiffs' misunderstanding did not alter the legal effect of the executed documents. The appeal was dismissed and the High Court's orders affirmed.

Citation
[2014] IESC 3
Parties
Appellants/plaintiffs: Judith Whelan, Therese Lynch, Philip Lynch, Eileen Lynch, Philipa Lynch and Paul Lynch; Respondent/defendant: Allied Irish Banks p.l.c.; Respondent/defendant: Matheson Ormsby Prentice Solicitors; Respondent/defendant: LK Shields Solicitors
Jurisdiction
Ireland
Judgment Date
30 January 2014
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From High Court
Outcome
appeal dismissed
Legal Topics
Loan Facility Agreements, Recourse Vs Non Recourse Loans, Solicitor's Duty of Care, Misrepresentation, Joint and Several Liability
Contract Law Banking Law Professional Negligence Loan Facility Agreements Recourse Vs Non Recourse Loans Solicitor's Duty of Care Misrepresentation Joint and Several Liability

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Parties

Judith Whelan, Therese Lynch, Philip Lynch, Eileen Lynch, Philipa Lynch and Paul Lynch

Appellants/plaintiffs

Allied Irish Banks p.l.c.

Respondent/defendant

Matheson Ormsby Prentice Solicitors

Respondent/defendant

LK Shields Solicitors

Respondent/defendant

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the loan facility was non-recourse or full recourse against the plaintiffs
  2. 2 Whether the solicitors were negligent in their advice regarding the nature of the loan
  3. 3 Whether there was actionable misrepresentation by the bank or solicitors

Ratio Decidendi

The Supreme Court held the facility letter unambiguously imposed joint and several liability on all borrowers, including the plaintiffs. There was no evidence of actionable misrepresentation by the bank or solicitors. The solicitors' retainer was limited and did not extend to advising on the recourse nature of the loan. The plaintiffs' misunderstanding did not alter the legal effect of the executed documents. The appeal was dismissed and the High Court's orders affirmed.

Court Disposition

appeal dismissed

Orders

  • High Court judgment and orders affirmed
  • Plaintiffs remain jointly and severally liable for the loan and costs