Court grants summary judgement against Dublin businessman over €1.8m loan

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, and the case against him stands adjourned.

Today, Mr Justice Brian McGovern rejected arguments on behalf of Mr Shanahan that he had an arguable defence to the claim for summary judgement against him.

Mr Shanahan said the €1.8m loan, originally provided by the Educational Building Society (EBS) in 2008/9 and later sold by NAMA to Promontoria, was provided on the basis of limited recourse to him.

He said he would not have borrowed the money if there had been any personal risk or liability.

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".

For reasons of public policy, the courts will not permit oral evidence to be admissible if it was introduced for the purpose of contradicting the terms of a written agreement, he said.

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 exact amount of the summary judgement will be dealt with later.