Jailed Ivor faces court case linked to property deal
JAILED politician Ivor Callely is facing a fresh court battle after High Court proceedings were initiated which could restrict his ability to sell or transfer property.
Investec, which secured an €11m judgment against the former junior minister last year, has initiated new proceedings against both Callely and his wife Jennifer.
Details of the case emerged as the disgraced politician spent his second day behind bars after being jailed for expenses fraud.
Papers have been filed by the specialist bank in the High Court giving notice of a 'lis pendens'.
This is a legal notice which indicates there is a pending lawsuit involving a property.
It effectively restricts a registered owner from selling a property as it puts potential buyers on notice that it may be the subject of litigation.
Investec has declined to comment on the details of the case.
A spokesman said: "As this involves ongoing litigation, we're not in a position to comment on it beyond confirming it is before the courts."
Separately, Callely transferred his home into the ownership of his estranged wife three years ago, a move which also had the effect of placing it beyond the reach of creditors.
Documents from the Registry of Deeds show that Callely transferred the ownership of his marital home in Clontarf, Dublin into his wife's name in May 2011. The transfer was previously unreported.
Jennifer Callely has hired a law firm to represent her in the Investec case. However, there is no indication Ivor Callely has done the same. Nobody answered at the Clontarf home yesterday when visited by the Herald.
The litigation is likely to be delayed for several months as a result of Callely's jail term.
He will qualify for release in mid-November if he gets full remission on his sentence.
Sources close to the former politician say he has not considered appealing the length of his sentence. He is currently being held in Mountjoy.
Investec secured an €11m judgment against Callely last July arising out of a March 2007 loan agreement.
That saw Callely and three business associates borrow €9.85m to buy two seaside properties in Clontarf, with a view to building apartments and shops. However, the project ran into planning difficulties and never got off the ground.
The bank claimed all four were jointly and severally liable to repay the loan and accrued interest under that agreement. It means the bank can demand repayment of the full amount of the loans from any of the four involved. One of the group, Galway-based businessman John O'Dolan, died in 2009.
Callely was jailed this week after pleading guilty to mobile phone expenses fraud.