€280,000 given to couple by ‘naive friend’ was loan not gift, judge rules
Woman now on social welfare as sum not repaid
A €280,000 sum given to a husband and wife by their “dear and naive” friend was a loan with no specified repayment date and not an unsolicited “gift”, a High Court judge has ruled.
The “real tragedy” stems from the reaction of Jacqueline and John Keenaghan when Fidelma ‘Della’ Kerrigan sought repayment in 2014 of the loan made by her in August 2010, Ms Justice Deirdre Murphy said.
The €280,000 was one-third of a €750,000 compensation sum secured by Ms Kerrigan over serious injuries she suffered in a road accident in 2002 in which her father died.
The judge accepted evidence of Ms Kerrigan and her sister Celine that, in the months leading up to the settlement, Jacqueline Keenaghan – whose architect husband’s business was in serious difficulty – broached the possibility of Della Kerrigan helping her out of the settlement proceeds and assured she would pay back “every penny”.
Ms Kerrigan had agreed in principle to help out her “dear friend” and Celine supported her sister’s decision.
Rather than acknowledge their debt, the Keenaghans chose to deny it and, thereby, “at least by implication”, cast doubt on the honesty of Della and her sister Celine, the judge said.
“It was Jacqueline Keenaghan’s denial of the true circumstances of this loan that ruptured this friendship,” she said.
“The Kerrigans saw this denial for what it was – an enormous breach of trust.”
There was no suggestion Della Kerrigan ever demanded immediate repayment of the full sum and the court was confident any reasonable proposal from the couple would have found favour with Ms Kerrigan.
The Keenaghans could have made repayments from the sale of lands and their earnings and it would “not have been unreasonable” for them to have asked their adult children, whose education had been “entirely funded” from Della Kerrigan’s money, to make some contribution.
Even if she had found the €280,000 was a gift, she would have set that aside as an “improvident transaction” which had “unjustly enriched” the defendants, the judge said.
The case has been adjourned to January 29 for final orders and to address cost and interest issues.
Outside court, Ms Kerrigan said: “I’m glad it’s over.”
Ms Kerrigan (59), a single woman of St Benildus Avenue, Ballyshannon, Co Donegal, and sister Celine had told the court the money was offered as a loan after Ms Keenaghan, of Rathmore, Ballyshannon, sought money from them.
Ms Kerrigan said she sought repayment in 2014 but it was not repaid and she is now on social welfare payments.