ACC Loan Management Ltd -v- Connolly & Anor [2017] IECA 119 (04 April 2017)

ACC Loan Management Ltd -v- Connolly & Anor [2017] IECA 119 (04 April 2017)

In the absence of any evidence of undue influence, misrepresentation, or other wrongful act by the principal debtor, there is no arguable defence available in Irish law to a guarantor based solely on the creditor's knowledge of a familial relationship or failure to ensure independent legal advice; the guarantee is valid despite the absence of a seal, as consideration was provided.

Citation
[2017] IECA 119
Parties
Plaintiff/respondent: A.C.C Loan Management Limited; Defendant/appellant: John Connolly; Defendant/appellant: Maurice Connolly
Jurisdiction
Ireland
Judgment Date
04 April 2017
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal dismissed
Legal Topics
Guarantees, Undue Influence, Independent Legal Advice, Summary Judgment, Constructive Notice, Seal Requirement
Contract Law Banking Law Equity Guarantees Undue Influence Independent Legal Advice Summary Judgment Constructive Notice +1 more

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Parties

A.C.C Loan Management Limited

Plaintiff/respondent

John Connolly

Defendant/appellant

Maurice Connolly

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a guarantor who does not allege undue influence or misrepresentation has an arguable defence based on the creditor's obligation to ensure understanding and consent when on notice of a family relationship
  2. 2 Whether the absence of a seal on a guarantee executed before the Land and Conveyancing Law Reform Act 2009 invalidates the guarantee

Ratio Decidendi

In the absence of any evidence of undue influence, misrepresentation, or other wrongful act by the principal debtor, there is no arguable defence available in Irish law to a guarantor based solely on the creditor's knowledge of a familial relationship or failure to ensure independent legal advice; the guarantee is valid despite the absence of a seal, as consideration was provided.

Court Disposition

appeal dismissed

Orders

  • time for appeal extended
  • summary judgment against appellant affirmed