Ex-Fine Gael TD Josepha Madigan must file a defence to a bank’s debt claim within eight weeks or she may have a High Court judgement entered against her.
Ulster Bank alleges Ms Madigan, a former cabinet minister and a qualified solicitor, and her brother Patrick Madigan, also a solicitor, failed to meet repayments on foot of three loans despite demands.
The bank recently issued a High Court motion seeking judgment in default of defence against the pair in the sum of €225,869 plus interest.
However, on Monday barrister Keith Farry, for the Madigans, told the court the two sides agree his clients should be granted an eight-week extension to file their defence to the claims.
The bank should be awarded its legal costs for its motion, but such an order should be paused, said Mr Farry, instructed by McDermott Creed & Martyn Solicitors.
Mr Justice Anthony Barr noted that judgment will be granted to the bank against the Madigans if the defence is not filed within the extension period. He made the costs order as agreed between the sides.
Ulster Bank Ireland DAC, represented by barrister Nevan Powell and OSM Partners, says it advanced a €201,000 loan to the Madigans in late 2005, also extended overdraft facilities that year and, in December 2007, loaned them ST£100,000.
The pair “failed to repay the monies in accordance with the terms of the facilities”, causing it to demand payment of €213,000 allegedly due in January 2019, the lender alleges.
Its case claims they have been “unjustly enriched” by the money to its detriment.
As of late August, the Madigans owed €225,869 but interest was accruing at a rate of €27.82 per day, the bank alleges.
The case seeks judgment against them jointly and severally in the sum of €225,959 plus interest and damages for “unjust enrichment."
Ms Madigan, a TD for Dublin Rathdown, served as minister of state with responsibility for special education and inclusion until March of this year, when she announced she had resigned from the role and would be stepping down from politics. She opted not to run in the recent general election.
She was minister for culture, heritage and the Gaeltacht from 2017 until 2020.
