Harry Crosbie, High Court, Summary Judgement
The High Court has ruled
Nama is entitled to €77 million summary judgment orders against businessman
Harry Crosbie.
Mr Justice David Keane ruled
today Mr Crosbie had failed to show any reasonable prospect of a bona fide
defence to the Nama claim such as would entitle him to a full court hearing of
the claim.
In those circumstances, he
ruled Nama is entitled to summary judgment but adjourned final orders for a
week to let the sides consider his ruling.
Nama moved to enforce the
€77 million loans after Mr Crosbie failed to disclose substantial assets to the
agency when first asked to do so, the Commercial Court was told during the
summary judgment application last month.
A letter sent by solicitors
for Nama in August 2012 said full and complete disclosure was a requirement of
Nama’s January 2012 Memorandum of Understanding with Mr Crosbie and his “lack
of candour” in dealings with Nama was “simply not acceptable”, especially when
Mr Crosbie and related companies collectively owed Nama more than €420 million.
Nama was terminating the
memorandum, reserving all its rights and wanted Mr Crosbie to take various
steps, including resigning directorships of companies and sell various
properties, the letter saud.
Mr Crosbie had argued Nama
was effectively trying to bankrupt him and it was not entitled to summary
judgment. He argued Nama was bound by an agreement set out in a letter of
August 24th 2012 relating to management and disposal of assets and liabilities
of Mr Crosbie and companies connected with him. Nama obtained some €35 million
from the sale of assets under that agreement but and was now seeking to resile
from aspects of that agreement, he said.
That alleged agreement was
the basis for Mr Crosbie’s defence to summary judgment and he argued, on foot
of it, he was entitled to a full plenary hearing. Mr Crosbie also rejected
claims by Nama he misled it as to whether he had unencumbered assets.
Under the August 24th 2012
agreement, Mr Crosbie, his wife and son resigned as directors of several
companies and Nama agreed to release charges and any claims by it concerning Mr
Crosbie’s home at Hanover Quay, Dublin or the home of his son Simon.
The businesses of two
companies were also to be transferred to Simon Crosbie for “nominal
consideration” subject to sale of sites in Dublin Port, with proceeds to be
given to Nama. Harry Crosbie was also to sell property in Dublin Port to Dublin
Port Company.
The agreement also provided,
without prejudice to Rita Crosbie’s claim to full ownership of a property at
Eze, France, Mr Crosbie would try to sell a 50 per cent interest in that within
18 months. The agreement stated Nama would not object to the proceeds of sale
being used to discharge Mrs Crosbie’s debts relating to her house in Wexford.
Mr Crosbie was to arrange
for sale of three apartments in Villefranche sur Mer, France and for his 45 per
cent of the sales proceeds to go to Nama. Nama was also to try and settle Mr
Crosbie’s debts with KBC and ABN AMRO banks. The agreement also stated Nama has
no interest in the property or business of Cafe H.
In his judgment today, Mr
Justice Keane found the letter could not be construed as establishing a
reasonable prospect of bona fide defence to the claim for summary judgment. The
letter could not be read as meaning Nama had relinquished its entitlement to
call in the loans or to seek a money judgment, he said.
Nama’s claim arises from
personal debts of €55 million of Mr Crosbie and his guarantees of the
liabilities of Shoal Trading Ltd and Ossory Park Management Ltd (OPML). The
agency took over AIB loans of Mr Crosbie and his companies in 2010.
It is not seeking judgment
concerning other sums due under a separate €353 million facility for
development of the Point Village. Recourse for the €353 million is limited to
assets provided as security, plus an additional personal recourse amount.
Nama appointed receivers in
April 2013 on foot of an unmet demand for repayment under the loans and
guarantees. Earlier this year, it served a further demand on Mr Crosbie seeking
payment by March 17th last of €77 million.
