Businessman is liable for property site loan, judge finds

THE Commercial Court has granted summary judgment against a businessman over a €1.8m loan towards the purchase of a one-acre site at Mill Lane, Shankill, Co Dublin.

Michael Shanahan, Victoria Road, Killiney, Co Dublin, was sued by Promontoria (Arrow) Ltd which says the loan now stands at just over €2m.

Mr Shanahan was sued along with Cathal Mallon, Sandymount Avenue, Dublin, the case against whom stands adjourned. Yesterday, Mr Justice Brian McGovern rejected arguments on behalf of Mr Shanahan that he had an arguable defence to the claim for summary judgment against him.

Mr Shanahan said the loan originally provided by EBS and later sold by Nama was provided on the basis of limited recourse to him. He claimed this was agreed at a meeting between him and two EBS representatives in June 2006.

The loan facility letter provided by EBS did not comprise the whole of the agreement between him and EBS, he argued.

Mr Justice McGovern said the defence raised by him “lacks credibility and flies in the face of the written documents signed and accepted by the defendant”.

The defendant had failed to raise an arguable defence to meet the threshold required in order to have the matter sent for full hearing, the judge said.

The exact amount of the summary judgment will be dealt with later.