SOLICITOR AND property investor Brian O’Donnell asked Bank of Ireland to refer legal cases to his law practice which would help him to generate profits to make interest payments on his loans with the bank.
Mr O’Donnell wrote to Bank of Ireland last September providing further details about the property investments of his firm, Vico Capital, and the finances of his practice, Brian O’Donnell Solicitors.
He outlined the financial health of his law practice and said that an orderly management of the international property assets would generate enough capital over time to be able to repay the bank.
The bank has since issued legal proceedings against Mr O’Donnell and his wife Mary for €69.5 million over unpaid property loans.
A letter dated September 17th, 2010, says he had asked the bank many times for legal work.
“Many times over the last number of years we have requested that Bank of Ireland, a bank with which we have had a relationship for over 30 years, would refer legal cases/clients to us rather than simply sending all its work to AL Goodbody or Arthur Cox,” wrote Mr O’Donnell.
He told the bank that requests were made to the then head of private banking, Mark Cunningham, and other senior staff at the bank.
“Regrettably no cases have been forwarded,” wrote Mr O’Donnell.
“Were the bank to refer cases to the law firm, this would generate profits which in turn would be funnelled back to Bank of Ireland in interest payments.”
Mr O’Donnell said that his law practice, a commercial legal firm based in Dublin, had referred “substantial cases” to Bank of Ireland “running into tens of millions”.
“It is a source of regret that this simple device to assist has always been rejected,” wrote Mr O’Donnell. “Both I and the law firm retain a very good international reputation and I personally have been recognised as the leading corporate lawyer in the country on a number of occasions.”
Business stalled for the law firm after the collapse of Lehman Brothers, he said, and its turnover and profitability were badly affected by the recession.
Mr O’Donnell and his wife had property and financial assets worth €1.089 billion and borrowings of €886 million last July. Their lenders include Morgan Stanley, German bank Aareal and Allied Irish Banks.
Their finances are listed in a document entitled Statement of Affairs of Mr Brian O’Donnell and Dr MP O’Donnell as at July 31st, 2010, printed on the headed paper of Vico Capital. The record has been filed in the Commercial Court which will hear the bank’s action against them in March.
