Callely consents to €11m judgment

Former Fianna Fáil senator Ivor Callely has consented to an €11m judgment being entered against him at the High Court.

The Irish branch of Investec Bank plc had brought proceedings against Mr Callely, with an address at St Lawrence’s Rd, Clontarf, Dublin, arising from a Mar 2007 loan agreement under which €9.85m was advanced to Mr Callely and three other borrowers — John O’Dolan, Denis Kenny, and Daragh Sharkey — to buy property. The bank claimed all four borrowers were jointly and severally liable to repay it.

The case against Mr Callely was listed before Mr Justice Kevin Cross who was told by Ciaran Lewis, for the bank, Mr Callely was consenting to judgment for a €11m sum and the bank was agreeable. The judge entered judgment for that sum.

The bank claimed the loan agreement provided that the sum advanced, plus accrued interest, was to be repaid a year after the Mar 30, 2007, date of draw-down of the loan. The bank said it later agreed to extend the final repayment date to June 30th 2008 and it brought the proceedings after making several demands for repayment.

It claimed the sum due, with interest, was some €11.6m but the sum Mr Callely agreed to was €11m, plus costs.

In response to the bank’s claim, Mr Callely had argued, among other claims, the loan agreement contemplated the execution by him of a guarantee and indemnity with the clear implication his liability under the loan was to be under that guarantee and indemnity.

In those circumstances, he argued the case was improperly constituted. Without prejudice to that claim, he also argued, unknown to him and without his consent, the bank had paid a €500,000 sum to one of his co-borrowers, John O’Dolan, now deceased, which was then used to pay off Mr O’Dolan’s personal debnts with the bank.

Mr Callely had also made a number of claims as to how a bank-appointed receiver had managed the property at issue and said he intended to take proceedings in that regard. The bank argued Mr Callely had no defence to its claim and also said he was incorrect in relation to his allegations about a payment to Mr O’Dolan.

There was no payment of €500,000 from the loan account to Mr O’Dolan and Mr Callely was referring to a payment into a separate account under a different name in relatoon to which Mr Callely had no interest or liability whatsoever, it said.