Galway couple consent to judgement for €3.4m against them in loans case

By Ann O'Loughlin

A Co Galway couple has consented to a judgement of €3.4m against them arising out of an alleged failure to repay loans used to acquire assets including a nursing home.

Ennis Property DAC secured the judgment from Dr Michael and Sally Casey, who it has claimed in separate but related proceedings engaged in alleged fraudulent transfers of lands adjoining the nursing home.

The fund and the receiver appointed over the home, Mr David O'Connor of BDO, allege the transactions were designed to allegedly defraud the Casey's creditors.

Proceedings have also been brought against solicitor Niall Finnegan in his capacity as the apparent trustee of the investor Mr Jim Egan of Ballagh, Bushy Park, Galway who is the alleged beneficial owner of the lands.

Both actions were admitted to the fast track Commercial Court list by Mr Justice Brian McGovern.

In its first action, Ennis sought judgment against the Caseys arising out funds they borrowed from Bank of Scotland between 2003 and 20017.

The monies were used to build a 52-bed nursing home in Carna Co Galway, acquire a medical centre at Doughiska in Co Galway and to invest in a German property fund.

Ennis made a demand for the repayment of Eur3.4m which the fund said remains due and owing to it. The demand was not satisfied.

When the matter came before Mr Justice Brian McGovern lawyers for the couple of Ugoole, Moycullen Galway said their clients were consenting to the judgment.

Ennis acquired the loans from Bank of Scotland in 2015 and entered into negotiations with the Caseys.

Ennis said after it failed to reach an agreement with the Caseys overselling the nursing home it appointed Mr O'Connor as a receiver in April.

In separate proceedings, Ennis and Mr O'Connor seek orders against the couple and Mr Finnegan of the firm Brannigan, Cosgrove, Finnegan, Dublin 4 including deeming certain transactions of lands around the nursing home null and void.

Mr Egan has been joined as a defendant to the claim.

Ennis and Mr O'Connor represented by Rossa Fanning SC and Stephen Byrne Bl, claim the transactions entered into in 2015, which involved the sale of lands to an investor, have had a prejudicial effect on Ennis's security.

Counsel said the transactions, which effectively landlock the nursing home, contain a right of way and a wayleave agreement that contains onerous and restrictive obligations affecting the nursing home.

It is claimed the Casey's transferred the land for €150,000, but as part of the deal committed to pay for a wayleave agreement, relating to wastewater, that was almost twice that amount over five years.

Counsel said the agreement made no commercial sense at all.

Counsel said Ennis did not know the identity of the beneficial owner until the case came before the Court.

Martin Hayden SC for Mr Finnegan objected to the case being admitted on grounds including delay by the plaintiffs, and that as his client only acted in trust for another party Mr Finnegan should not be a defendant.

In a sworn statement Mr Egan said he had instructed Mr Finnegan not to disclose his name to the plaintiffs.

He said his name should be substituted in the proceedings for that of Mr Finnegan, who had "simply provided conveyancing services."

The Judge in admitting the case said he was satisfied to add Mr Egan as a defendant to the action.

Any application by Mr Finnegan to be let out of the case the judge said could be made at a later date when the action returns before the court.