€9.5m ruling against Carey and partner

HURLING legend DJ Carey and his partner, businesswoman Sarah Newman, have consented at the Commercial Court to a judgment for more than €9 million each against them in favour of AIB Mortgage Bank arising from loans and guarantees of each other’s liabilities.

Mr Justice Peter Kelly granted judgment for more than €9.5m against Mr Carey arising from an April 2007 mortgage loan of €7.85m issued in the context of a wider commercial transaction involving him and associated businesses to refinance existing debt due to Irish Nationwide Building Society and to release equity on properties held by him and Ms Newman.

The €7.85m loan was secured on properties at 908 Ladycastle, The K Club, Straffan, Co Kildare, and 5 The Inch, Mount Juliet, Co Kilkenny. The judgment also arises from Mr Carey’s guarantee of May 2007, limited to €1.5m, of the liabilities of Ms Newman.

Judgment for about €9.4m was granted against Ms Newman arising from her guarantee, limited to €7.85m, of the liabilities of Mr Carey and under a €1.5m mortgage loan secured on 821 Ladycastle, The K Club.

James Doherty, for AIB, said “relatively minor” arrears — €7,349 — had arisen on the mortgage loan account but there was no response from Ms Newman to the bank in relation to it.

Neither Mr Carey nor Ms Newman, with an address at Alma Road, Monkstown, Co Dublin, were in court yesterday but both were represented by a solicitor with the firm Whitney Moore who said they were consenting to judgment but wanted a stay on registration and execution of the judgment orders of three months.

Mr Doherty opposed a three-month stay. While the bank made demands arising from loan account arrears from January last, it had received no response whatsoever from Mr Carey, he said. The bank could agree to a shorter stay but had “a degree of scepticism” given events to date, he said.

In Ms Newman’s case, counsel said the bank opposed any stay. The bank was aware of issues concerning a Swiss property and wanted to be able to move quickly against that, Mr Doherty said.

The judge agreed to place a four-week stay on the judgment order in relation to Mr Carey but refused any stay in the case of Ms Newman after noting the bank’s concerns about its ability to execute judgment over property in another jurisdiction. Ms Newman had been given the opportunity by the bank to make proposals but had given no information, he said.

The bank said the €7.85m mortgage facility given to Mr Carey was for a term of 20 years and subject to terms and conditions. It wrote to Mr Carey on January 19, January 31 and February 7 about arrears on the mortgage account. On February 7, it demanded repayment of arrears within 21 days failing which it indicated it would be entitled to terminate the facility.

On March 9, the bank wrote to Mr Carey about the outstanding sums due and said, as no steps had been taken to remedy the breach, it was terminating the facility and demanding immediate repayment.

The bank again wrote to Mr Carey on March 28 advising him Ms Newman was in breach of her loan obligations. It demanded immediate repayment of €1.5m under Mr Carey’s May 2007 guarantee of Ms Newman’s liabilities.

The bank wrote to Ms Newman on February 10 last calling for repayment of arrears of €7,349 on the mortgage account within 21 days, failing which it indicated it would be entitled to terminate the facility.

On March 7, the bank wrote to Ms Newman stating Mr Carey was in breach of his loan obligations and demanding immediate payment of the sum of €7,875,000, plus daily interest, under the guarantee provided by her.