The proceedings by City Index Ltd against Mr Mulcair, of Ballyclough House, Ballysheedy, Co Limerick, alleging he has been unjustly enriched by €1.8m were admitted to the Commercial Court yesterday by Mr Justice Peter Kelly.
When Mr Justice Kelly asked Brian Kennedy SC, representing Mr Mulcair, to indicate what the defence to the case might be, counsel said Mr Mulcair was saying that certain representations were made to him and, in reliance on those, he had continued with an open account with the firm. When the account reached a certain level, Mr Mulcair decided to close it and would say he would have closed the account earlier when it was at a lower level.
Mr Kennedy added that his side may seek to join another party to the case.
City Index Ltd, with offices at Moorgate, London, provides retail and commercial derivative and foreign exchange investment services. It claims a spread trading account was opened by Mr Mulcair on November 13, 2007, following his introduction by &Davy stockbrokers in Dublin.
City Index claim it gave Davy a power of attorney in relation to Mr Mulcair’s account and that he carried out a significant number of trades in euro and US dollars between November 2007 and June 2008.
It claims that, following margin calls made by City Index, Mr Mulcair transferred money from his accounts with Davy to City Index which then credited his accounts with the sum of €800,000 on June 13, 2008 and sums of €350,000 and €650,000 on June 27.
However, in error and based on a mistake of fact, City Index claims one of its agents, acting in an unauthorised fashion, had credited Mr Mulcair’s account with duplicates of those same sums — €800,000 on June 16 and €350,00 and €650,000 on June 30 2008.
City Index said it discovered on July 24 last the duplicate credit paid to Mr Mulcair’s account. It said the account was marked with a €1.8m debit balance that remains outstanding.
Discussions with Mr Mulcair since then had failed to resolve the matter and, despite a written demand for repayment, no repayment had been made.