NIB secures ruling in High Court for €37m against developers and couple over loan

NATIONAL Irish Bank is entitled to summary judgment for €37 million against Durkan New Homes, a couple and another firm over failure to repay loans given for a housing development at Cabinteely, Co Dublin, the High Court has ruled.

Mr Justice Peter Charleton found in favour of the bank yesterday against Durkan New Homes, with offices at Ranelagh, Dublin, Don and Marian Casey, of Woodbrook, Beech Park, Cabinteely, and Tullycross Developments Ltd, with a registered office care of O’Donnell Sweeney Solicitors, Earlsfort Terrace, Dublin, but directed no orders would be made until after he hears the defendants’ application for a stay on his decision next week.

He will also consider interest and costs issues next Thursday.

In a statement, Durkan New Homes said it had “no comment” to make on the judgment.

National Irish Bank had sought summary judgment for €37.1m under two separate but related loan agreements of March 2006.

It claimed one loan agreement for €29.46m related to Durkan New Homes and Don and Marian Casey (the DNH agreement) while the second loan agreement for €7.64m related to Tullycross.

The €29.4m loan was to refinance existing loans on land and for the purchase of houses so as to make up a large site at Beech Park, Cabinteely. It was proposed 11 or 12 houses would be bought and then knocked, a large site would then be assembled and planning permission sought to build hundreds of houses.

The loan terms included full repayment some two years and six months after the first drawdown. The €7.64m loan to Tullycross was on the same terms.

The bank had claimed the effect of cross-guarantees meant all four defendants had a liability for the €37m sum but the defendants argued they had paid interest by the loans’ repayment date of September 2008 and the bank’s claim was limited to securities on certain properties.

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