TWO RETIRED women being sued with others for €16.3 million over unpaid loans to develop a property in Dalkey, Co Dublin, relied entirely on the financial advice of a businessman, who seemed to have “walked them” into an agreement which they would never have entered had it been explained, their lawyer has told the Commercial Court.

Zurich Bank, which has brought proceedings against the two women and five others seeking €16.3 million judgment orders, claims the property is now worth no more than €3.5 million.

The case came before the Commercial Court this week, having previously been adjourned by Mr Justice Peter Kelly to allow issues relating to service of the proceedings to be addressed.

As the defendants have taken issue with the bank’s claims that its delay in bringing the action arose because of negotiations with the defendants, the case has been adjourned to allow affidavits be filed.

The defendants are: Noreen Hynes, Larkinstown, Coolree, Co Wexford; Ambrose O’Brien, Kilcraigue, Kilcloon, Co Meath; Mary Murphy, Leinster Woods, Carton Demesne, Maynooth, Co Kildare; Mary Prenderville and Frankie Dwyer, both of Albany Road, Ranelagh, Dublin; Des O’Sullivan, Windermere, Dublin Road, Naas, Co Kildare, and Colm Sugrue, Glenabbey Road, Mount Merrion, Co Dublin.

They are being sued over unpaid €15 million loans made in October 2007 to a partnership to purchase a 1.45 acre site with full planning permission at Santa Maria, Cunningham Road, Dalkey, plus the rear garden of Arranmore, 13 Cunningham Road, Dalkey.

A receiver was appointed over the property by the bank on February 19th, 2009. Last November it demanded repayment of some €16 million, then the sum allegedly due under the 2007 loan.

The bank claims it had engaged in negotiations with Alan Hynes, a director of Tuskar Property Holdings Ltd, who, it claims, indicated he acted with the authority of four defendants – Noreen Hynes, Mary Murphy, Colm Sugrue and Des O’Sullivan.

It claims it did its best to achieve an outcome that would let the defendants deal with their liabilities in a structured way, but had concluded nothing concrete would come of the negotiations.

The bank says it also gave the other defendants an opportunity to make proposals to deal with their indebtedness but the time afforded to all the defendants aimed at resolving the matter by agreement was “ultimately to no avail”.

Michael McDowell SC, for Ms Prenderville and Ms Dwyer, said they were two retired women and disputed the claims related to negotiations with the bank about the debt.

His clients could not pay the €16 million sum and had made no offer to pay, he said.

Mr McDowell said his clients had relied entirely on Mr Hynes for financial advice but at no time could they have countenanced a liability of €16 million and would never have done so had the transaction been explained to them.

They did not have assets of that magnitude and Mr Hynes seemed to have “walked them” into an agreement they were not party to.

The judge was told Mr Hynes and his wife had been out of the country in recent weeks but had come back just last Saturday which, it was stated, would have been his earliest opportunity to see the court documents.

Bernard Dunleavy, for Zurich, said the bank had had detailed negotiations with Mr Hynes and, before that, had talks with the individual defendants, but there was now “a blanket denial” of any contacts.