FIVE SIBLINGS who provided “mezzanine” finance for a development in north Dublin have brought a legal action for €7.2 million against the developer over failure to repay loans.
The proceedings by Donal Quinn, Bellclare, St Mary’s Road, Ballsbridge, Dublin; Zoe Quinn, Roxboro House, Baily, Co Dublin; Gilliane Quinn Deschonen, Wellington Road, Dublin 4; Stephen Quinn, Shiel, Ceanchor Road, Baily, Co Dublin; and Eamonn Quinn, Balsaggart, Ceanchor Road, Baily, Co Dublin, against Patrick Doyle, Brookdale, Kinsealy Lane, Malahide, Co Dublin, were transferred to the Commercial Court yesterday by Mr Justice Peter Kelly.
Brian Kennedy, for the plaintiffs, said the matter was “under settlement”, and asked that it be adjourned for one week to facilitate that settlement. Mr Justice Kelly made that order.
The case arises from a loan agreement of November 2006 under which the plaintiffs claim they agreed to advance a €5 million sum, with each giving €1 million, to Mr Doyle for the purposes of his business.
They claimed that the agreement provided that they would be repaid that sum, plus interest at 15 per cent per annum, by May 2008.
If those repayments and interest were not made by that date, it is claimed a 22 per cent per annum rate of interest would accrue from then up to the date of payment.
It was claimed that each plaintiff was due €1.25 million in May 2008, when Mr Doyle repaid a total of €500,000, which was divided equally between them. It was claimed that Mr Doyle later repaid a further sum of €150,000.
It is claimed that a balance of some €1.47 million each remains due to the plaintiffs.
In an affidavit, Stephen Quinn said the plaintiffs had agreed in 2006 to advance monies to Mr Doyle in circumstances where Anglo Irish Bank, which had funded other developments of Mr Doyle, had told him it was unwilling to provide further funds for a proposed development at Parkview, Dublin 11, and had suggested he instead obtain “mezzanine” finance.
Mr Quinn said he and his siblings had entered into the transaction as they considered it represented “an attractive investment opportunity”.
