ACC Bank -v- Dillon & Ors [2012] IEHC 474 (12 November 2012)

The guarantees were enforceable as they were supported by adequate consideration in the form of loan extensions, were not procured by illegitimate duress, and no collateral contract or misrepresentation was proven to negate liability. The defendants' arguments failed on the facts and law.

Citation: [2012] IEHC 474
Parties: Plaintiff: ACC Bank PLC; First Defendant: Gerard Dillon; Second Defendant: Patrick Corrigan; Third Defendant: Cordill Construction Limited (In Receivership)
Jurisdiction: Ireland
Judgment Date: 12 November 2012
Procedural Posture: Commercial Debt Recovery / Judgment After Trial
Outcome: Judgment for the plaintiff
Legal Topics: Guarantees, Consideration, Duress, Collateral Contract, Personal Liability of Directors

Contract Law Banking Law Commercial Law Guarantees Consideration Duress Collateral Contract Personal Liability of Directors

Case Brief

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Full judgment text Downloadable case file Legal principles 3 Authorities cited 8 Party arguments 2 Amounts and remedies 2

Parties

ACC Bank PLC

Plaintiff

Gerard Dillon

First Defendant

Patrick Corrigan

Second Defendant

Cordill Construction Limited (In Receivership)

Third Defendant

Procedural Posture

Commercial Debt Recovery / Judgment After Trial

Legal Issues

1 Whether personal guarantees given by directors are enforceable
2 Whether guarantees were procured by duress
3 Whether there was adequate consideration for the guarantees

Ratio Decidendi

Court Disposition

Judgment for the plaintiff

Orders

Decree against the first and second defendants, jointly and severally, for €5,383,181 in respect of guarantees for Cordill Construction's indebtedness.
Decree against the first and second defendants for €1,493,181 in respect of their additional personal borrowings.