ACC Bank Plc -v- Connolly & anor [2015] IEHC 188 (12 February 2015)

ACC Bank Plc -v- Connolly & anor [2015] IEHC 188 (12 February 2015)

The bank took reasonable steps regarding the first guarantee by obtaining a declaration of independent legal advice from the second defendant, and no evidence was provided to contradict this. No such steps were shown for the second guarantee, so that issue must go to plenary hearing. Lack of execution under seal is not a valid defence. The bank is entitled to summary judgment against both defendants on the first loan and guarantee, and against the first defendant on the second loan.

Citation
[2015] IEHC 188
Parties
Plaintiff: ACC Bank Plc; First Defendant: John Connolly; Second Defendant: Maurice Connolly
Jurisdiction
Ireland
Judgment Date
12 February 2015
Procedural Posture
Summary Judgment Application / Judgment on Application for Summary Judgment
Outcome
Summary judgment granted in part; issue of second guarantee remitted to plenary hearing; stay granted.
Legal Topics
Guarantees, Independent Legal Advice, Summary Judgment, Undue Influence
Banking Law Contract Law Guarantees Independent Legal Advice Summary Judgment Undue Influence

Case Brief

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Parties

ACC Bank Plc

Plaintiff

John Connolly

First Defendant

Maurice Connolly

Second Defendant

Procedural Posture

Summary Judgment Application / Judgment on Application for Summary Judgment

Legal Issues

  1. 1 Whether summary judgment should be granted against the defendants for unpaid loans and guarantees
  2. 2 Whether lack of independent legal advice to the guarantor (second defendant) is a defence
  3. 3 Whether the guarantees were properly executed

Ratio Decidendi

The bank took reasonable steps regarding the first guarantee by obtaining a declaration of independent legal advice from the second defendant, and no evidence was provided to contradict this. No such steps were shown for the second guarantee, so that issue must go to plenary hearing. Lack of execution under seal is not a valid defence. The bank is entitled to summary judgment against both defendants on the first loan and guarantee, and against the first defendant on the second loan.

Court Disposition

Summary judgment granted in part; issue of second guarantee remitted to plenary hearing; stay granted.

Orders

  • Leave to enter judgment against both defendants on the first loan facility and associated guarantee on a joint and several basis.
  • Leave to enter judgment against the first defendant on the second loan facility.