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 Post subject: Developer personally liable for company's debts
PostPosted: Thu Mar 17, 2011 8:43 am 
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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.

http://www.irishtimes.com/newspaper/bre ... ing60.html
Quote:
In a landmark ruling, the High Court has found Galway developer Brian Cunningham is personally liable for legal costs estimated at some €10 million.

The costs were awarded against companies in the Cunningham group to First Active arising from long-running litigation against the bank. The decision has significant implications for similar cases.

Mr Justice Frank Clarke today ruled Mr Cunningham should be held personally liable for the costs orders against the companies on grounds Mr Cunningham had funded and directed the relevant proceedings, the heavily insolvent companies could not have paid the costs and, had the cases succeeded, Mr Cunningham and his wife would have been the main beneficiaries.

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 Post subject: Re: Developer personally liable for company's debts
PostPosted: Thu Mar 17, 2011 9:28 am 
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Judge makes decision to ensure his ex-college mates get paid 8DD

In fact 8DD , 8DD


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 Post subject: Re: Developer personally liable for company's debts
PostPosted: Thu Mar 17, 2011 12:43 pm 
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Quote:
Judge makes decision to ensure his ex-college mates get paid


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.


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 Post subject: Re: Developer personally liable for company's debts
PostPosted: Thu Mar 17, 2011 1:26 pm 
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Panzraam wrote:
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Judge makes decision to ensure his ex-college mates get paid


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.

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.

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 Post subject: Re: Developer personally liable for company's debts
PostPosted: Thu Mar 17, 2011 3:35 pm 
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JohnnyTheFox wrote:
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.

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

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 Post subject: Re: Developer personally liable for company's debts
PostPosted: Thu Mar 17, 2011 4:20 pm 
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T-B-M wrote:
Judge makes decision to ensure his ex-college mates get paid 8DD

In fact 8DD , 8DD


+1

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


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 Post subject: Re: Developer personally liable for company's debts
PostPosted: Thu Mar 17, 2011 4:23 pm 
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yoganmahew wrote:
JohnnyTheFox wrote:
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.

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


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


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 Post subject: Re: Developer personally liable for company's debts
PostPosted: Thu Mar 17, 2011 10:30 pm 
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Albarino wrote:
T-B-M wrote:
Judge makes decision to ensure his ex-college mates get paid 8DD

In fact 8DD , 8DD


+1

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

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.

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 Post subject: Re: Developer personally liable for company's debts
PostPosted: Fri Jul 27, 2018 7:43 pm 
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Believe it or not this matter is still troubling the courts. :(

https://www.irishexaminer.com/breakingn ... 58319.html

Quote:
The Supreme Court has upheld a landmark ruling that Galway developer Brian Cunningham is personally liable for an estimated €10m in legal costs awarded to First Active plc against companies in the Cunningham Group arising from their long-running litigation against the bank.


and

Quote:
In 2011, Mr Justice Clarke, now the chief justice, ruled Mr Cunningham should be held personally liable for the costs orders granted to First Active against the eight companies involved in the litigation.

He did so on grounds that Mr Cunningham had funded and directed the relevant proceedings, the heavily insolvent companies could not have paid the costs and, had the cases succeeded, Mr Cunningham and his wife would have been the main beneficiaries.

The conduct of the proceedings by the Cunningham Group had added significantly to the legal costs and the fact the court had dismissed their central claim of fraud by direction were also relevant factors in his decision, the judge said.

Another relevant factor was that Mr Cunningham was told by First Active at an early stage it was considering applying to have him made personally liable, he added.


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

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 Post subject: Re: Developer personally liable for company's debts
PostPosted: Sat Jul 28, 2018 10:56 am 
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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 :lol:

https://www.independent.ie/irish-news/b ... 42049.html

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

https://www.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. :x


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