Allied Irish Banks PLC v Fanning & Ors (Approved) [2020] IECA 112 (16 January 2020)

Allied Irish Banks PLC v Fanning & Ors (Approved) [2020] IECA 112 (16 January 2020)

The Court held that the subsequent facility letters did not become operative, the original guarantee remained extant, and the defendants failed to establish any arguable defence supported by evidence. The High Court was correct to grant summary judgment.

Citation
[2020] IECA 112
Parties
Plaintiff/respondent: Allied Irish Banks PLC; Defendant/appellant: Arnold Fanning; Defendant/appellant: Sheila Fanning; Defendant/appellant: James Fanning
Jurisdiction
Ireland
Judgment Date
16 January 2020
Procedural Posture
Civil Appeal / Appeal From High Court Summary Judgment
Outcome
appeal dismissed
Legal Topics
Personal Guarantees, Summary Judgment, Facility Letters, Company Debt, Defences to Guarantee Liability
Banking Law Contract Law Personal Guarantees Summary Judgment Facility Letters Company Debt Defences to Guarantee Liability

Case Brief

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Parties

Allied Irish Banks PLC

Plaintiff/respondent

Arnold Fanning

Defendant/appellant

Sheila Fanning

Defendant/appellant

James Fanning

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Summary Judgment

Legal Issues

  1. 1 Whether subsequent facility letters superseded the original guarantee and affected the liability of guarantors
  2. 2 Whether the bank's evidence regarding the operative facility was sufficient for summary judgment
  3. 3 Whether the defendants had a fair or reasonable probability of a bona fide defence

Ratio Decidendi

The Court held that the subsequent facility letters did not become operative, the original guarantee remained extant, and the defendants failed to establish any arguable defence supported by evidence. The High Court was correct to grant summary judgment.

Court Disposition

appeal dismissed

Orders

  • Summary judgment against Sheila Fanning in the amount of €250,000 upheld
  • Summary judgment against James Fanning in the amount of €300,000 upheld