Bank, company, and retired taxing master before court

A dispute is before the High Court involving AIB, a company, and a retired High Court taxing master over an alleged settlement of a demand by the bank for repayment of monies it claims are due and owing.

Mr Justice Paul Gilligan was told AIB plc brought proceedings in seeking judgment against Fortberry Ltd for €5m arising out of the firm’s alleged failure to satisfy a demand for repayment of monies AIB loaned it in 2008.

It is also seeking judgment against a director of the firm’s solicitor, James Flynn, for €2.5m on foot of a guarantee he allegedly entered into in respect of the loan facilities, said Rossa Fanning, for the bank.

Mr Flynn is a retired High Court taxing master, of Dowth, Co Meath, an independent court officer who assesses the legal costs of a party involved in a legal matter, said counsel.

The bank’s claim, which is fully defended by the company and Mr Flynn, was due to be heard by the High Court last November.

That action did not proceed after the parties engaged in discussions aimed at resolving the matter.

Counsel said it was the bank’s case the matter was not settled. The company and Mr Flynn say the matter did settle following the talks. Fortberry and Mr Flynn have brought proceedings against the bank seeking specific performance of the settlement agreement they claim was reached.

Mr Justice Gilligan said the action brought by the company and Mr Flynn should proceed by way of a preliminary issue on Wednesday.