Investors’ damages action against AIB fast-tracked
The investors are seeking damages for alleged negligence, breach of contract, breach of fiduciary duty, negligent mismanagement, and misrepresentation by AIB and other parties over the operation of several investment funds in relation to commercial property in the UK, known as the Belfry funds.
The court heard individuals invested anything between €50,000 and €200,000 in the funds between 2002 and 2006.
The investors actions are against various parties including Allied Irish Banks, five companies known as Belfry Properties, and their directors, including property investor Tony Kilduff and former head of AIB Private Banking John Rockett.
The action is also against other related companies including Tullamona, Leyally, Monsal, and Essex Trust. The claims are denied.
Yesterday, Mr Justice Brian McGovern agreed to have several cases brought by investors admitted to the fast-track Commercial Court list.
The application to have the matter fast-tracked was made by the bank, which has concerns about the manner in which the cases have been advanced. No statement of claim has been served and, the bank says, it has little or no insight into the claim being advanced against the parties other than what was contained in the plenary summons.
AIB wants the statement of claim to be served on it immediately. It says more than 300 proceedings were issued by investors in August 2014.
More than 250 of those cases had been served by August 4, 2015. The bank says the delay is difficult to understand and has not been properly explained.
Mr Justice McGovern, after hearing representations from various parties, directed that a statement of claim be served within two weeks. The judge then adjourned the matter to a date in November when the court will consider several preliminary issues in the case.
