Court grants judgement against former director of motor dealership

The Four Courts

2 June 2024

The High Court has granted judgment of €117,500 against a former company director in favour of a Renault truck and commercial vehicles dealer.

In a judgment, Mr Justice Conleth Bradley held that Brian Daly had executed a continuing personal guarantee to fully indemnify Renault dealer Setanta Vehicle Sales Limited against all losses and damages incurred by Brian Daly Transport Services Limited (BDTS).

Mr Daly was a director of Co Meath-based BDTS, which went into liquidation in February 2018.

Mr Justice Bradley agreed to grant summary judgment against Mr Daly after finding there is not a fair and reasonable probability that he has a real defence to the claim against him.

Setanta asked for the summary judgment against Mr Daly, of Ashwood Way, Clondalkin, Dublin 22, on the basis of him having executed a guarantee and indemnity.

The judge said Setanta, with a registered office off the Longmile Road, Dublin 12, had agreed to lease two vehicles to BTDS under a 2015 hire-purchase agreement.

Several more vehicles were loaned on agreed written terms and Setanta also provided repair and maintenance services to the company.

Setanta alleged BTDS began to fail to discharge its lease and repair invoices in about March 2016 and started to default on its payment obligations in May the following year.

It claimed Mr Daly failed, refused or neglected to pay €117,500 when it issued a letter of demand for that sum in November 2018, said the judge.

Mr Justice Bradley said Mr Daly swore an affidavit stating that the commercial account with Setanta was in the company title and not his personal name. The judge said he disputed the amount being sought, which he said is a company debt for which he is not liable.

Mr Justice Bradley said Setanta has “clearly met the legal requirements” in an application for summary judgment. He was satisfied the evidence establishes that a termination sum of €45,800 became due and that there is an undischarged sum of €71,621 also owing.

The evidence established that Mr Daly executed a continuing personal guarantee to fully indemnify Setanta against all losses and damages incurred by BDTS, not only in relation to the hire-purchase agreement but also regarding any other transactions entered into by the two firms.

He said he will make an order that Setanta is entitled to have judgment entered against Mr Daly in the amount of €117,500.

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