The Commercial Court has ordered four businessmen to repay a €6.3m loan from AIB to develop land in Co Meath. The four men, including Jim Mansfield junior, had contested the bank's application for immediate repayment.
The action was taken by AIB against James Mansfield junior, Palmerstown House, Johnstown, Co Kildare; Brian Higgins, Allensgrove, Celbridge Road, Leixlip; Glen O'Callaghan, Drapier Road, Dublin 11; and Seamus Kavanagh, Kyle, Killea, Templemore, Co Tipperary.
They claimed the loan was not a commercial transaction, that they were entitled to be treated as consumers and that the case should go to a full hearing.
Mr Mansfield junior had also claimed that he was not an equal partner with the other three men and had not fully understood the nature of the loan because he has a reading age of seven.
The court heard that he is a director of 25 companies and can fly a helicopter, although he could not obtain a licence to do this because it requires a written test.
Mr Justice Peter Kelly said a report handed to the court from an educational psychologist said Mr Mansfield could read only very basic sentences like 'the cat sat on the rug'. Mr Justice Kelly said Mr Mansfield jnr had a wide range of business interests but had submitted to the court that these were family businesses and he was guided and advised by family members.
The judge noted that his signature appeared on the annual returns of these businesses. He said it was clear he had a good deal of experience of commercial and financial matters. But, despite this curious situation, he would have to accept that he had disability with a reading age of seven.
But the judge said Mr Mansfield was not entitled to claim he was unaware of what he was signing and he had not made out an arguable defence in that regard.
A previous hearing was told that the four men had borrowed the money in 2003 to buy land and develop apartments at Duleek, Co Meath. AIB had demanded repayment of the loan last September.
