Bank sues solicitor for €9.6m over guarantees

SOLICITOR and businessman Noel Smyth is being sued for €9.6 million at the Commercial Court over his guarantees of loans made to two companies.

Mr Justice Peter Kelly agreed to fast-track the action by Danske Bank, trading as National Irish Bank, against Monway and Fitzwilliam Finance Corporation, both with registered offices at Arkle Road, Sandyford, Dublin; and Mr Smyth, of Lisieux Hall, Murphystown Road, Sandyford, Dublin.

Declan Murphy, counsel for the defendants, said they wanted two weeks to file a defence to the application. Mr Murphy said the defence would include claims a bond was mis-sold to Fitzwilliam and would also be making set-off claims.

Mr Justice Kelly said he would would hear the summary judgment application next month.

The bank is seeking €8.3m summary judgment orders against Monway arising from a loan approved in November 2005 to purchase a site at Dun Laoghaire, and a loan of 2007 to buy a premises at Inchicore.

The security for that loan included a personal guarantee of Mr Smyth of liabilities of Monway up to a maximum €8.9m, the bank claims. The bank demanded repayment last September and, when no repayment was made, it demanded repayment from Mr Smyth.

In its claim against Fitzwilliam Finance, the bank claims some €1.3m is owing under a June 2007 facility under which €5m was advanced to provide finance for an investment by Monway in a bond. That was to be repaid from the proceeds of the bond with any shortfall to be funded by Fitzwilliam, the bank says.

NIB says Mr Smyth executed a guarantee related to the Fitzwilliam facility subject to a limit of €1.36m. The bank also demanded repayment under that guarantee in September.

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