Allied Irish Banks Plc v Hazel & Anor [2019] IECA 24 (01 February 2019)

Allied Irish Banks Plc v Hazel & Anor [2019] IECA 24 (01 February 2019)

The guarantee executed by the appellant was contractually agreed to be separate and unaffected by any failure or irregularity in other security. No duty of care was owed by the Bank to the appellant in respect of perfecting security. The trial judge correctly interpreted the guarantee and found no causative link between alleged Bank failures and appellant's loss. The counterclaim was properly considered and rejected.

Citation
[2019] IECA 24
Parties
Plaintiff/respondent: Allied Irish Banks PLC; Defendant/appellant: Liam Hazel; Defendant: Alex Gibbons
Jurisdiction
Ireland
Judgment Date
01 February 2019
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal dismissed
Legal Topics
Guarantee Enforcement, Negligence, Duty of Care, Counterclaim Procedure
Contract Law Banking Law Tort Law Guarantee Enforcement Negligence Duty of Care Counterclaim Procedure

Case Brief

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Parties

Allied Irish Banks PLC

Plaintiff/respondent

Liam Hazel

Defendant/appellant

Alex Gibbons

Defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the Bank's failure to perfect security affects enforceability of the guarantee
  2. 2 Whether the Bank owed a duty of care to the guarantor to perfect security
  3. 3 Whether the trial judge erred in not permitting prosecution of the counterclaim

Ratio Decidendi

The guarantee executed by the appellant was contractually agreed to be separate and unaffected by any failure or irregularity in other security. No duty of care was owed by the Bank to the appellant in respect of perfecting security. The trial judge correctly interpreted the guarantee and found no causative link between alleged Bank failures and appellant's loss. The counterclaim was properly considered and rejected.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed; judgment for the Bank against appellant in the sum of €290,225.17 upheld