Developer personally liable for company's debts


#1

I did a search and I see Cunningham has been mentioned before as a side note to the Michael Lynn saga but I think this one deserves a thread of its own.

OK, it’s €10m of legal costs and not the other debts of the company but it seems like a de facto reckless trading judgement in that Cunningham caused his companies to potentially incur debts (legal costs of the bank he was suing) knowing they had no means to pay those debts.

irishtimes.com/newspaper/bre … ing60.html


#2

Judge makes decision to ensure his ex-college mates get paid 8DD

In fact 8DD , 8DD


#3

No, they would have been paid in full by First Active in any case. This judgement simply means that First Active may recover some of those fees from Cunningham.


#4

They’d only get a fraction I guess but probably the most significant outcome is that it will act as a deterrent to other developers taking banks to court.


#5

Indeed, one would also hope that this would be a deterrent to them taking each other to court too.


#6

+1

This decision upholds a vital principle - the lawyers must always be paid


#7

exactly;
a limited liability company shouldn’t mean that one way bets are paid out


#8

As Panzraam has already pointed out above this judgement has absolutely zero impact on whether the lawyers get paid or not. First Active were always obliged to pay their lawyers and all this judgement does is allow them to try to claw back some of what they have paid from Brian Cunningham. In fact, going on the RTE account of this story I would wager that First Active won’t see a single penny as a result of this judgement. It seems that First Active already have multiple personal judgements against Cunningham so they already had him over a barrel for whatever assets he has left. The only thing this judgement is good for to First Active is to act as a warning to others not to try to drag things out through the courts.


#9

Believe it or not this matter is still troubling the courts. :frowning:

irishexaminer.com/breakingn … 58319.html

and

The action against First Active, by Cunningham, dates back to 2003. :frowning:


#10

The latest media reports are silent on who is representing Brian Cunningham in this case. Is Cunningham still able to finance a legal team? This case is such a long-shot, his lawyers couldn’t have been betting on a pay-out from First Active.

This case has another intriguing link to the legal profession - Michael Lynn :laughing:

independent.ie/irish-news/b … 42049.html

Of course, Brian Cunningham is a mere neophyte when it comes to legal marathons:

irishtimes.com/news/crime-a … -1.3578313

This goes back to the 1993 Glackin report into a site in Ballsbridge bought and sold by Telecom (Eircom) site in the early 1990s, a time when prime commercial real estate in Dublin was falling in value. :angry: