Negligence case against Davy Stockbrokers settled

A claim Davy Stockbrokers was negligent in advising a businessman to sell investment bonds for around €5.58m which he alleged was at a significant undervalue has been settled, the Commercial Court has heard.

Patrick Kearney and Kilmona Holdings Ltd brought proceedings against J&E Davy, trading as Davy, over advice the stockbrokers allegedly gave in 2014 on the sale of 27m Anglo Irish Bank callable subordinated floating bonds.

The case was admitted to the Commercial Court list last October on consent between the parties.

Yesterday, Mr Justice John Hedigan was informed by Andrew Fitzpatrick, for the plaintiffs, that the matter had been settled.

In his action, Mr Kearney, who lives in Queensway Quay, Gibralter, claimed he and a company called Pattan SL were advanced a loan for €18.4m by the former Anglo Irish Bank in 2009 to buy the bonds.

Anglo’s successor, IBRC, later assigned the benefit of the loans to a company called Stapleford Finance Ltd.

In 2014, Mr Kearney said he engaged LeBruin Private Ltd to advise him on how to deal with his debt obligations to Stapleford.

Following discussions involving Mr Kearney, LeBruin and Tony O’Connor, who Mr Kearney alleged was an employee of Davy, it was decided Davy would sell the bonds for a price which would discharge the €2.36m debt to Stapleford and leave a profit which would be divided between him, LeBruin and Davy.

The bonds were sold for 20.25 cent in the euro, realising a total price of around €5.58m.

Mr Kearney claimed the price represented by Davy was below their market value and Davy failed to disclose the conflict between his interests and theirs.


Lifestyle

Gráinne Healy only started running regularly a few years ago. She’s already completed 50 parkruns. She tells Rowena Walsh what motivates her.Ageing with Attitude: Parkruns and quiet Friday nights

Against popular wisdom and flying a plane made from bamboo, wire and bike handlebars, a Co Antrim woman blazed a sky trail for aviation and for the independence of women, writes Bette BrowneMagnificent Lilian Bland blazed a trail for independence of women in her plane of bamboo

The epic battle for the bridge at Arnhem, as depicted in the blockbuster 'A Bridge Too Far', saw the Allies aim to end the war by Christmas 1944, but failed as a huge airborne assault force failed to take the last bridge across the Rhine. In an extract from his latest book 'A Bloody Week', Dan Harvey tells the story of one of the hundreds of brave men from Ireland who gave their all to the Allied campaignThe bridge to war: Dan Harvey's new book looks at the Irish who went a bridge too far

Several days ago, the long-awaited sequel to Margaret Atwood’s The Handmaid’s Tale was released.Lindsay Woods: I have always consumed books at a furious pace

More From The Irish Examiner