Bank sues solicitors over alleged failure to ensure loan security

ACC Bank has sued a firm of solicitors for some €5.75 million over alleged failure to ensure the bank had proper security in relation to a loan advanced to buy a hotel, bistro and nightclub in Dromahair, Co Leitrim.

The proceedings were transferred to the Commercial Court yesterday by Mr Justice Peter Kelly. The case is against Denis M McDowell, John Paul McDowell and Breen JF Purcells, practising as McDowell Purcell Solicitors, Capel Building, Dublin. In an affidavit, a solicitor for the defendant solicitors said they refuted the allegations against them.

The action arises from a loan of €5.25m advanced by ACC in 2004 to the Abbey Hotel Co-Ownership of 13 borrowers. ACC claims the loan facility provided them with certain tax benefits.