McKillen Junior Firm Faces Collapse – Loan Deal Needed
- and his companies are pursuing legal action against Real Estate Loan Management (RELM) Ltd., alleging coercion, duress, and undue influence in the restructuring of loan agreements and leases.
- The core of the dispute revolves around deeds of variation to existing loan agreements and leases.
- According to an affidavit submitted by McKillen Jr., Paul Dowling, CEO of RELM Ltd.
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McKillen Jr. Alleges Coercion in Loan Agreement Dispute with Real Estate Loan Management
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Businessman Patrick McKillen Jr. and his companies are pursuing legal action against Real Estate Loan Management (RELM) Ltd., alleging coercion, duress, and undue influence in the restructuring of loan agreements and leases. the case, admitted to the fast-track commercial list of the Irish Commercial Court on Monday, centers on claims that RELM’s CEO, paul Dowling, threatened to collapse McKillen Jr.’s property firms by appointing receivers unless he agreed to new terms.
Background: The Dispute
The core of the dispute revolves around deeds of variation to existing loan agreements and leases. McKillen Jr. and his companies argue these variations were not entered into freely but were the result of illegitimate pressure from RELM and its CEO,Paul Dowling. They seek declarations that the deeds are null, void, and should be set aside by the court, alongside damages for alleged duress, coercion, and misrepresentation.
Allegations of coercion and threats
According to an affidavit submitted by McKillen Jr., Paul Dowling, CEO of RELM Ltd. and related firms, explicitly threatened to appoint receivers to the McKillen Jr. companies. This threat,McKillen Jr.alleges, was a direct attempt to force agreement to the new loan agreements and leases. The plaintiffs contend this constitutes duress and coercion, invalidating any subsequent agreements reached under such pressure.
The specific nature of the property firms involved and the financial details of the loans have not yet been publicly disclosed in full, pending further court proceedings. However, the claim suggests a notable financial stake is at risk.
Court Proceedings and Consent
Mr. Justice Mark Sanfey admitted the proceedings to the fast-track commercial list on October 7, 2024, following an application by Jarlath Ryan SC, representing McKillen Jr. and the plaintiff companies. Notably, the RELM defendant firms and joint receivers Ken Fennell and Brendan O’Reilly consented to the case being entered on the list. However, the court was informed that RELM’s consent should not be interpreted as an acceptance of the allegations made by the plaintiffs.
The fast-track commercial list is designed to expedite the resolution of complex commercial disputes, suggesting the court recognizes the urgency and potential importance of this case.
Legal Claims and Relief Sought
The plaintiffs are seeking several key legal outcomes:
- Declarations of Nullity: A court declaration that the deeds of variation are legally invalid and unenforceable.
- Setting Aside the deeds: An order from the court to rescind the deeds of variation.
- Damages: Financial compensation for losses allegedly incurred consequently of the duress,coercion,and misrepresentation.
The success of these claims will hinge on McKillen Jr.