Judgment has been reserved in a High Court action taken by Bank of Scotland Ireland against Hotelier, Jim Mansfield.
The case was heard in the Commercial Court, which fast tracks commercial disputes.
Mr Mansfield, of Tasaggart House in Saggart, Co Dublin, is being pursued for summary judgment orders totalling €206 million arising from debts of his companies. The case relates to loans provided by Bank of Scotland to HSS Jeffel and Park Associates Ltd, The Mansfield Group - of which Mr Mansfield is a Director.
The loans were advanced for purchase of lands and for development of a conference office, a golf course, residential units and a hotel.
Mr Mansfield is opposing the claim on a number of grounds: including that the bank failed to honour an alleged agreement to loan more money to complete the Citywest Convention Centre - which they claim led to the collapse of the Mansfield group.
Barrister Patrick Leonard, representing Mr Mansfield, told the Commercial Court of a discussion between Mr Mansfield and Bank of Scotland Ireland CEO Mark Duffy in August 2008.
The court was told that during the discussion Mr Duffy said that the bank would loan Mr Mansfield a sum of between €17m and €20 million, and that they should commence construction of the Citywest convention centre.
According to Mr Mansfield, had that money been advanced to one of the companies in the group, it would have come out of its difficulties and would have been able to trade through the problems
But the bank did not loan this money.
Senior Counsel for Bank of Scotland Ireland, Paul Gallagher said that for this to have been a binding agreement there should have been a contract detailing terms of the loan, the amount of the loan or the interest rate. Mr Gallagher said that it was totally and utterly inconsistent with any belief that there was a binding agreement reached in August 2008.
Mr Justice Peter Kelly said it seemed to him to be a crucial element in lending to know what interest rate any money was being loaned at. Mr Leonard said that one might think that relating to most borrowers.
Mr Justice Kelly has described this as the biggest ever summary judgment application brought in Ireland arising from a personal guarantee. He reserved judgment in the case until a later date.
