EBS action site value was ‘fabricated’
David Dempsey, Poolahoney Lodge, Ballyduff, Arklow, Co Wicklow, told Mr Justice Peter Kelly yesterday he wanted a valuer with Sherry Fitzgerald to be joined to the case brought by the EBS against him.
Mr Dempsey said his defence would involve an allegation of culpable conduct by the EBS in relation to how it processed loans made to him.
He said the loans were on the basis of a “fabricated” site valuation and he wanted the valuer to be joined so as to say he was told to do a valuation for e10m when the site was not valued above e6m.
The judge told Mr Dempsey, who was representing himself having told the court he could not afford lawyers, said he would need to put such matters on affidavit. He was not saying what Mr Dempsey had told the court amounted to a defence but Mr Dempsey would have the opportunity to set it out on affidavit.
The case was adjourned to April 2 when the building society will seek judgment for e8.3m against Mr Dempsey who will have to show he has an arguable defence to avoid judgment being entered.
EBS claims it agreed in May 2006 to advance e7.91m to Mr Dempsey to facilitate his purchase of 20 acres at Tyone, Nenagh, which was being sold with planning permission for 199 residential units and a creche.
It had also offered him a construction loan for e6.596m but that was never accepted by Mr Dempsey.
The society claims the e7.91m loan advanced was an 18 month only facility and was secured by a first legal charge over the Nenagh site and other properties. Full repayment was due in May 2008 and had been demanded from Mr Dempsey but some e8.3m was now due and owing.
The society also demanded possession of properties put up as security. It said Mr Dempsey had no bona fide defence and, while he had agreed to sell two properties to realise the security, he had not agreed the terms.
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