ONE OF the State’s largest builders and property developers, the late Liam Maye, had an estate that was valued at €72,000 in June 2008, the Commercial Court in Dublin heard yesterday.
Mr Justice Peter Kelly described the valuation as “extraordinary”. Mr Maye was a founder director and shareholder of the Castlethorn construction group, which built the Dundrum shopping centre and the Adamstown residential development in west Dublin. The group has been operating since the 1980s.
AIB has taken a case against Mr Maye’s widow, Anne Maye, as executrix of her late husband’s estate, Mayeco Properties Ltd and other entities. It claims it is owed €58 million.
The court was told that the bank had been receiving periodic reports that Mr Maye had a minimum net worth of €100 million. However, in May it was shown an affidavit of Ms Maye’s in which it was stated that her late husband’s estate had a gross value of €72,000.
On foot of this affidavit a grant of probate for the estate was issued on June 12th, 2008. The affidavit was given to the bank by accountant Bernard Somers, acting for the estate. The estate comprised cars and boats and had a net value of €53,299.
The court heard the AIB loans were being reviewed by the National Asset Management Agency as to their eligibility for being taken over by it. The facilities include a €57 million loan to Mayeco to buy a block at the Sweepstakes development in Ballsbridge, Dublin.
Mr Somers had informed AIB’s solicitors he understood Mr Maye was involved in a number of property transactions at the time of his death and, in those circumstances, it was agreed with the Revenue that the affidavit would be sufficient to enable a grant of probate to be obtained.
AIB had “grave concerns” about the explanation given by Mr Somers for the “most unusual” process whereby the grant of probate was extracted.
Mr Justice Kelly refused the bank’s application to have its case fast-tracked. He said it was only in April that AIB had issued the proceedings and it was only now, on the last motion day of the legal year, that it was seeking to have the proceedings transferred to the Commercial Court. The bank had failed to show the necessary urgency to merit transfer and the case would have to proceed through the ordinary High Court list, he ruled.
The court was told it was the bank’s policy to give a period of grace before engaging in a serious fashion with the family of a deceased person.
Last year a case taken against Ms Maye by a former business partner of Mr Maye’s, Bernard Costello, was admitted to the Commercial Court. That case concerned Mr Costello’s claim that he was to be indemnified against certain debts and liabilities and receive a payment of €2 million. In return he was to transfer certain assets and properties to the estate.
The court hearing heard the estate had loans of some €400 million. Mr Costello's complaint was that the deal had been agreed but the indemnities had not been forthcoming. *
* This article was amened on 28/07/10