McAteer & ors -v- Laszlo & ors [2018] IEHC 386 (05 July 2018)

McAteer & ors -v- Laszlo & ors [2018] IEHC 386 (05 July 2018)

There is no factual or legal basis for attributing the wrongdoing of RBS to Ulster Bank in the absence of a pleaded or established agency relationship. The Defence fails to adequately plead agency or fraud, and the alleged LIBOR manipulation by RBS is not causally connected to the loans at issue. The relevant paragraphs of the Defence are bound to fail and should be struck out.

Citation
[2018] IEHC 386
Parties
Plaintiff: Michael McAteer; Plaintiff: Aengus Burns; Plaintiff: Ulster Bank Ltd.; Defendant: Laszlo Fried; Defendant: Laszlo Jewellers Ltd.; Defendant: Jaszai Ltd.; Defendant: Claddagh Jewellers Ltd.
Jurisdiction
Ireland
Judgment Date
05 July 2018
Procedural Posture
Motion to Strike Out Pleadings / Interlocutory
Outcome
Application granted. Relevant paragraphs of Defence struck out.
Legal Topics
Strike Out of Pleadings, Agency, Corporate Veil, LIBOR Manipulation, Fraudulent Misrepresentation, Illegality in Contracts
Banking Law Contract Law Civil Procedure Strike Out of Pleadings Agency Corporate Veil LIBOR Manipulation Fraudulent Misrepresentation +1 more

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Parties

Michael McAteer

Plaintiff

Aengus Burns

Plaintiff

Ulster Bank Ltd.

Plaintiff

Laszlo Fried

Defendant

Laszlo Jewellers Ltd.

Defendant

Jaszai Ltd.

Defendant

Claddagh Jewellers Ltd.

Defendant

Procedural Posture

Motion to Strike Out Pleadings / Interlocutory

Legal Issues

  1. 1 Whether paragraphs in the Defence and Counterclaim relating to LIBOR manipulation by RBS can be maintained against Ulster Bank
  2. 2 Whether Ulster Bank can be treated as agent or alter ego of RBS for purposes of attributing wrongdoing
  3. 3 Whether alleged LIBOR manipulation by RBS can provide a defence to loan enforcement by Ulster Bank

Ratio Decidendi

There is no factual or legal basis for attributing the wrongdoing of RBS to Ulster Bank in the absence of a pleaded or established agency relationship. The Defence fails to adequately plead agency or fraud, and the alleged LIBOR manipulation by RBS is not causally connected to the loans at issue. The relevant paragraphs of the Defence are bound to fail and should be struck out.

Court Disposition

Application granted. Relevant paragraphs of Defence struck out.

Orders

  • Strike out of specified paragraphs in the Defence and Counterclaim of the first and third defendants.
  • Strike out of equivalent paragraphs in the Defence of the second and fourth defendants.