ACC case ‘abused the court process’

ACC Bank abused the court process by bringing a "trivial" case over a technical breach by a law firm in relation to its duty to register a mortgage on a property, a judge has said.

The bank brought the High Court case against a firm of solicitors “as some form of leverage”, as a way of making good the loss in value of the property involved due to a downturn in the market, Mr Justice Brian McGovern said.

ACC had also complained to the Law Society, accusing certain solicitors in the firm of Barry and Company, Athlone, of misconduct but the Society “did not see fit” to take any steps,” he said.

The judge added: “The courts ... should be used for the resolution of genuine disputes and not...in circumstances where there cannot have been any appreciable loss suffered by the ACC as a result of those breaches.” In 2005, the bank loaned €660,000 to developer Brian Doyle of Kenagh in Longford in relation to the development of sites in Glack, Longford. This loan was later paid off from the sale of those Glack sites and later, in 2006, the bank loaned Mr Doyle another €589,000 for another development site at Newtownforbes in Roscommon. Another €150,000 from the sale of the Glack sites was used to pay down the Newtownforbes loan.

Barry and Company Solicitors acted for Mr Doyle, and around the time of the first loan, December 2005, the firm’s principal, Anthony Barry, sold it to two of his partners Orla Cummins and Julie Shanley. ACC sought an order claiming Anthony Barry and Orla Cummins were guilty of misconduct by failing to comply with undertakings in relation to the loans.

Mr Justice McGovern said: “The real problem for the plaintiff ... is the reduction in the value of its security but not the want of security.”