Maloney -v- Danske Bank A/S [2014] IEHC 441 (06 October 2014)

Maloney -v- Danske Bank A/S [2014] IEHC 441 (06 October 2014)

The floating charge dated 10th September 2008 is unenforceable because the condition precedent in the 2008 loan agreement (satisfactory personal asset statements) was not fulfilled, the loan facility was never advanced, and the agreement (including the security provisions) lapsed by its own terms. The floating charge was only intended to secure the 2008 facility, not previous loans, and cannot be enforced as a stand-alone security.

Citation
[2014] IEHC 441
Parties
Applicant: George Maloney; Respondent: Danske Bank A/S
Jurisdiction
Ireland
Judgment Date
06 October 2014
Procedural Posture
Application for Directions in Company Liquidation / High Court Judgment
Outcome
Floating charge declared unenforceable
Legal Topics
Enforceability of Security Interests, Floating Charges, Conditions Precedent, Loan Agreements, Consideration, Implied Terms
Company Law Banking Law Contract Law Enforceability of Security Interests Floating Charges Conditions Precedent Loan Agreements Consideration +1 more

Case Brief

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Parties

George Maloney

Applicant

Danske Bank A/S

Respondent

Procedural Posture

Application for Directions in Company Liquidation / High Court Judgment

Legal Issues

  1. 1 Whether the floating charge dated 10th September 2008 is enforceable by Danske Bank against RQB Limited (in liquidation)
  2. 2 Whether the failure to satisfy a condition precedent in the loan agreement renders the floating charge unenforceable
  3. 3 Whether the floating charge can be enforced as security for previous loans (2005 facility)

Ratio Decidendi

The floating charge dated 10th September 2008 is unenforceable because the condition precedent in the 2008 loan agreement (satisfactory personal asset statements) was not fulfilled, the loan facility was never advanced, and the agreement (including the security provisions) lapsed by its own terms. The floating charge was only intended to secure the 2008 facility, not previous loans, and cannot be enforced as a stand-alone security.

Court Disposition

Floating charge declared unenforceable

Orders

  • The floating charge dated 10th September 2008 is unenforceable by Danske Bank against RQB Limited (in liquidation).