A CAR dealer and former client of struck-off solicitor Thomas Byrne, who is being pursued by National Irish Bank to repay a €1.33 million loan allegedly secured on undertakings given by Mr Byrne, appears to have gone to Poland, a judge was told yesterday.
Remarking that it appeared “the bird has flown”, Mr Justice Peter Kelly listed for Thursday proceedings by the bank against John Madden, Tandy’s Lane, Lucan, Co Dublin, and principal of John Madden Car Sales.
The judge was earlier told by counsel for Mr Madden that his client appeared to have gone to Poland and to have got involved in the motor business there.
The judge said the bank’s proceedings could be served on Mr Madden at both his Lucan and Polish addresses and returned the matter to Thursday.
Mr Madden has denied liability for the €1.33 million and claims the loan monies were paid directly to Mr Byrne and he, Mr Madden, never received them. He claims he acted at all times “under the fraud and/or undue influence” of Mr Byrne.
NIB claims it lent €1.33 million to Mr Madden in late 2005 for future property investment purposes. Security for the loan was to be provided in the form of an undertaking from Mr Byrne to provide a legal mortgage and the deeds of a property at Coldwater Lakes, Saggart, Co Dublin.
However, the agreed security was not provided and Mr Madden has failed to repay the sums agreed, the bank claims. A receiver had been appointed to part of Mr Madden’s property, it also said.
In a defence and counter-claim, Mr Madden pleads that the loan agreement is void and of no effect and has also pleaded that he never instructed his solicitors to provide the alleged undertakings. He claims he entered into an agreement with Mr Byrne in about September 2005 to purchase the property at Coldwater Lakes from Mr Byrne for €1.3 million. Acting on Mr Byrne’s advice, Mr Madden claims he then approached NIB to get a loan and the bank had executed the loan agreement on the advice of Mr Byrne and relying on representations by Mr Byrne that he had transferred his title in the property to Mr Madden.
Mr Madden claims both he and the bank understood Mr Madden was entitled to be the legal and/or beneficial owner of the property and consequently was entitled to offer the property as security for repayment of the loan.
He claims Mr Byrne never in actual fact at any point transferred his title in the property to Mr Madden and never took any steps to do so. In those circumstances, the loan agreement is void, he contends.
In reply, the bank contends that Mr Madden had, at meetings with it, acknowledged his liability and agreed to repay the sum under the loan agreement.