Allied Irish Banks plc v McKeown & Anor [2019] IECA 296 (28 November 2019)

Allied Irish Banks plc v McKeown & Anor [2019] IECA 296 (28 November 2019)

The Court held that the loan agreements were repayable on demand and the bank was entitled to call in the loans as it did; the guarantees were continuing and not discharged by the refinancing; the appellants' allegations of improper motive and overcharging did not amount to a defence; and there was no breach of natural justice or valid counterclaim. The High Court made no error of law or fact.

Citation
[2019] IECA 296
Parties
Plaintiff/respondent: Allied Irish Banks plc; Defendant/appellant: Paddy McKeown; Defendant/appellant: Adelaide McCarthy
Jurisdiction
Ireland
Judgment Date
28 November 2019
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court Summary Judgment
Outcome
appeal dismissed
Legal Topics
Loan Agreements, Guarantees, Summary Judgment, On Demand Clauses, Counterclaim, Natural Justice
Banking Law Contract Law Loan Agreements Guarantees Summary Judgment On Demand Clauses Counterclaim Natural Justice

Case Brief

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Parties

Allied Irish Banks plc

Plaintiff/respondent

Paddy McKeown

Defendant/appellant

Adelaide McCarthy

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court Summary Judgment

Legal Issues

  1. 1 Whether the High Court erred in granting summary judgment to the bank on the basis of 'on demand' loan clauses
  2. 2 Whether the guarantees provided by the second appellant were discharged by material alteration of the underlying loans
  3. 3 Whether the respondent acted with improper motives or in bad faith in calling in the loans

Ratio Decidendi

The Court held that the loan agreements were repayable on demand and the bank was entitled to call in the loans as it did; the guarantees were continuing and not discharged by the refinancing; the appellants' allegations of improper motive and overcharging did not amount to a defence; and there was no breach of natural justice or valid counterclaim. The High Court made no error of law or fact.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed; High Court judgment and orders affirmed.