herald

Thursday 18 July 2019

BANKING

NAMA braced for more cases

NAMA is bracing itself for further legal action from Ireland's biggest developers after the victory of Paddy McKillen (below).

The Supreme Court found that NAMA took a decision to take over Mr McKillen's loans before the agency had actually been officially set up in late 2009 and said that this decision could not stand.

A seven-judge Supreme Court ruled that a decision by an interim NAMA team to acquire Mr McKillen's €2.1bn in loans had no legal effect because it was taken before NAMA was formally established.

Contrary to what the High Court had decided, that interim decision was not given legal effect by any subsequent act or series of acts by NAMA, he also ruled.

Some developers welcomed the judgment, and said that the powers of NAMA were finally being scrutinised.

However, NAMA said that this outcome was particular to Mr McKillen's case alone.

The Construction Industry Federation (CIF) has indicated that it is now studying the ruling to see what the implications were for its members.

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