ACCBank never revealed to a horse breeder that a 72-acre holding which he agreed to purchase in Co Wexford six years ago had been repossessed by the bank from a farmer who continued to live in the centre of the holding and had threatened to kill a previous prospective purchaser, the High Court heard yesterday.
Thomas Corcoran, of Athgoe, Newcastle, Co Dublin, did not know until after he entered a contract to purchase the lands at Effernoge, Ferns, in July 1994 that they had already been conveyed by ACCBank to a solicitor who was holding them in trust for the bank, Mr James Dwyer SC, for Mr Corcoran, said.
Mr Corcoran had gone to see the former owner of the lands, Mr James Walsh, in 1995, and had been threatened by Mr Walsh with a knife, counsel said.
Mr Walsh had also produced a can of petrol and a lighter and threatened to burn Mr Corcoran's jeep carrying himself and his two children, counsel said. He said people purporting to be members of the United Farmers Association had been present and also threatened Mr Corcoran.
One man had said he was Mr Paddy Murphy and that he was chairman of the United Farmers Association and had warned Mr Corcoran to keep away.
There were threats that his horses would be shot. Counsel said references were made to the IRA.
Mr Dwyer was opening an action by Mr Corcoran against ACCBank plc, seeking damages for breach of contract. The case began before Mr Justice Kinlen yesterday and will resume on Tuesday.
During the hearing, Mr Justice Kinlen expressed concern that a statutory declaration by Mr Walsh to the effect that he had no claim to the lands and undertakings by him not to interfere with Mr Corcoran or other purchasers, had been breached.
He said it was his experience that a spell in prison was useful for concentrating the mind in such circumstances.
The judge remarked that both Mr Corcoran and ACC were being "held to ransom" by Mr Walsh.
Mr Dwyer said that at this point Mr Corcoran did not want to proceed with the purchase of the lands. This was a reasonable position given Mr Corcoran's experience of the matter to date, he added. Mr Corcoran did not believe the lands were worth his life or anyone else's.
Outlining his case, Mr Dwyer said the lands at Effernoge had been held by Mr Walsh who became indebted to the ACC.
The bank got an order for possession of the lands in 1988 and this was executed in 1990.
ACC permitted Mr Walsh and his family to keep their house and half an acre of land. ACC had entered into a contract for sale of the lands to another couple but Mr Walsh and persons purporting to be from the UFA had threatened to kill them. ACC had set aside the sale at the request of the couple and conveyed the land to Mr Eric Brunker, a solicitor with A & L Goodbody's, in March 1991. Mr Brunker was registered as owner of the lands in 1992.
When Mr Corcoran went to buy the lands, he thought he was buying it from Mr Brunker as the legitimate owner and was not told by ACC that it had any interest in the lands, Mr Dwyer said. He was not told that Mr Walsh was "a very violent man who had threatened the previous purchaser".
Mr Dwyer said Mr Corcoran was not given any information about the history of the property because ACC was aware no other person would buy it if they were aware of the real situation.
Mr Dwyer said his client wanted damages for breach of contract.
He said Mr Brunker was not a defendant in the action. Mr Brunker had himself been threatened and did not want to be involved. ACC had agreed to take a reconveyance and the property was now vested in the bank.
In its defence, ACC accepted and acknowledged the existence of a contract of sale dated July 18th, 1994.
It denied it was unable to effect full sale or vacant possession, or that it had been in default. It also denied it had allowed third parties to use or trespass on the property or that Mr Corcoran had suffered loss and damage. It said it had secured an undertaking from Mr Walsh before Wexford Circuit Court not to interfere with, threaten or intimidate the purchaser of the lands or Mr Corcoran.
