ACC Bank -v- Mullee & Anor [2013] IEHC 553_2 (14 December 2011)

ACC Bank -v- Mullee & Anor [2013] IEHC 553_2 (14 December 2011)

The guarantees were entered into prior to the actual drawdown of the monies under the 2007 and 2008 facility letters. The facility letters expressly required joint and several guarantees from the company directors as security. Therefore, the guarantees are not void for past consideration and are valid and enforceable for sums due.

Citation
[2013] IEHC 553_2
Parties
Applicant: ACC Bank; Respondent: Dominick Mullee; Respondent: Siobhan Mullee
Jurisdiction
Ireland
Judgment Date
14 December 2011
Procedural Posture
Bankruptcy / Adjudication of Creditor's Claim in Scheme of Arrangement
Outcome
claim allowed
Legal Topics
Enforceability of Guarantees, Past Consideration, Scheme of Arrangement, Personal Guarantees, Facility Letters
Bankruptcy Contract Law Enforceability of Guarantees Past Consideration Scheme of Arrangement Personal Guarantees Facility Letters

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Parties

ACC Bank

Applicant

Dominick Mullee

Respondent

Siobhan Mullee

Respondent

Procedural Posture

Bankruptcy / Adjudication of Creditor's Claim in Scheme of Arrangement

Legal Issues

  1. 1 Whether guarantees entered into by arranging debtors in respect of 2007 and 2008 facility letters are valid and enforceable or void for past consideration
  2. 2 Whether ACC Bank is entitled to prove a debt of €1,421,536.86 in the scheme of arrangement

Ratio Decidendi

The guarantees were entered into prior to the actual drawdown of the monies under the 2007 and 2008 facility letters. The facility letters expressly required joint and several guarantees from the company directors as security. Therefore, the guarantees are not void for past consideration and are valid and enforceable for sums due.

Court Disposition

claim allowed

Orders

  • ACC Bank is entitled to prove in the arrangements as a creditor for the sums due under the 2007 and 2008 guarantees