STRUCK-OFF solicitor Thomas Byrne has told the High Court he was personally afraid of property developer John Kelly, who became Mr Byrne’s biggest client.
Mr Byrne has begun giving evidence in proceedings against him by Mr Kelly who alleges Mr Byrne had failed to honour undertakings required to pay off loans of some €6.1 million made to Mr Kelly by the Educational Building Society.
Mr Kelly, of Hunter’s Moon, Kilquade, Co Wicklow, has alleged Mr Byrne converted to his own use money from a €9 million loan given to Mr Kelly by IIB Bank and intended to repay the EBS money and also to fund a property deal in Co Wexford.
Mr Justice Frank Clarke will today continue the hearing in which Mr Kelly is seeking judgment for some €6.1 million against Mr Byrne. Mr Byrne, who the court heard got to know Mr Kelly from about 1998, has denied the claims and has alleged Mr Kelly instructed him not to pay off the EBS loans.
Yesterday, Mr Byrne told the judge Mr Kelly could be charming but, when Mr Kelly was dealing with Mr Byrne, he could also be extremely aggressive and intimidating. Mr Byrne said he was personally afraid of Mr Kelly.
“He would be screaming at me on the phone and to my staff when he wanted something done,” he said. He added that, in 2004/05, Mr Kelly would be on to him from Spain about two or three times a day. Mr Kelly would get on to him to make sure he was awake and when he needed payments to be directed to certain banks, he said.
He said Mr Kelly became interested in a property at Oilgate in Co Wexford in August 2006 and told Mr Byrne he could expect to hear from him and might be required to pay a deposit for Mr Kelly.
Mr Byrne said Mr Kelly essentially could not get funding and had approached a building society and Anglo Irish Bank but they were not interested in financing because there were no plans. At that stage, the banks were getting cautious about the market. Mr Kelly had secured the IIB loan in December 2006.
Mr Byrne said Mr Kelly’s account was constantly in deficit except when a large cheque came in but it didn’t take long for those funds to be depleted. Generally, Mr Kelly’s funds were in deficit.
Earlier, Mr Kelly said he knew Mr Byrne had had difficulties with the Law Society but he also knew the society had in 2005 given Mr Byrne “a clean bill of health” and allowed him continue to practise.
Mr Kelly said he was not worried about the EBS money at that stage because Mr Byrne had given him assurances the EBS loans would be paid off with the IIB money and he had trusted Mr Byrne.