€17m judgments against two Clare company directors

The Clare Champion - Friday January 13, 2012

JUDGEMENTS totaling almost €17 million have been registered in the High Court against two Clare company directors.

Details of the court decisions, published in this week’s edition of Stubbs Gazette, disclose that a judgement of €10,451,717.29 was registered against John Declan Flanagan of Ballyvarra House, Doolin and €6,419,133.91 against Gerard Lillis of Alva, Cree in the High Court on December 23.

Anglo Irish Bank had secured the judgement orders, arising from loans and guarantees of the liabilities of two property companies, Liscannor Properties Ltd and Atlantic Development Ltd, whose proposed schemes included a tax-driven hotel and a park-and-ride project at the Cliffs of Moher.

Anglo, who had previously appointed a receiver over properties of the companies, secured the order in the Commercial Court last November. A third named defendant, architect Ted Joyce of Ballina, Tipperary had a judgement of €3.35m recorded against him. The orders were made on consent of the three who had initially opposed the bank’s claim on grounds, including that Anglo effectively acted as partner and co-venturer with the companies.

All three had also counterclaimed over alleged breach of contract and agreements by the bank. It was alleged the bank had made representations that various loans, including for the hotel and park-and-ride facility, would involve the bank’s recourse being limited to property and having no recourse to investors. It was claimed the bank’s subsequent refusal to make finance available on a nonrecourse basis meant the defendants lost the benefit of the projects and suffered serious economic loss and damage.

The court heard a further claim that the bank had represented that it would not seek performance of the loans until the park-and-ride facility was operational. Anglo had denied the claims.