Court refuses to order solicitors to pay Anglo €21m

The Commercial Court has refused to order three Limerick solicitors to pay Anglo Irish Bank €21m over personal guarantees on unpaid property loans.

Partners Dermot O’Donovan, Michael Sherry and Aidan Frawley had argued that they had been given assurances by senior executives at the bank that the guarantees would never be called in.

Mr Justice Peter Kelly has ruled that the matter should go to trial.

The three men from the law firm Dermot G O' Donovan and Partners say assurances were given by the bank that personal guarantees on loans were 'form-filling exercises' that would not be called in.

Their lawyers denied accusations by Anglo that this was a far-fetched defence.

The guarantees arose from loans of €165m to companies and partnerships linked to the Limerick based Fordmount Property Group.

In separate proceedings Fordmount's MD Michael Daly also claimed he had been told by Anglo that personal guarantees would not be relied upon which was found by another judge to be a sufficient defence to allow the matter go to trial.

Mr Justice Peter Kelly has decided to follow suit and has refused Anglo's bid for summary judgment against the solicitors.