Bench backs bank over alleged undervalued property sale
The Court of Appeal in Northern Ireland has dismissed a property developerās claims that the Bank of Ireland undervalued and mishandled the sale of 13 residential properties in Derry. The case centred on allegations of breach of duty, bad faith, and conflict of interest during the bankās loan recovery process.
The developer argued that the properties were worth over GBP 4 million, but the court upheld an earlier ruling in favour of the bank.
The dispute began when the Bank of Ireland sold the 13 Derry properties for around GBP 2.17 million as part of a wider loan recovery effort. The developer, represented by Noel Shortt, claimed the bank had failed to secure the best possible price and acted improperly.
The bank defended its actions, relying on independent valuations that placed the propertiesā worth between GBP 1.8 million and GBP 2.3 million. In court, the bankās representative, John OāBrien, was supported by barrister William Gowdy KC. The court ultimately preferred the bankās expert valuation over the developerās, noting that the successful bidder paid over 16% above the bankās estimated value.
An earlier High Court decision had already rejected the developerās claims of wrongdoing. The Court of Appeal confirmed this ruling, finding no evidence of breach of duty, bad faith, or conflict of interest. It concluded that the bank had achieved the best price reasonably available at the time of the sale.
The appeal was dismissed in full, ending the developerās legal challenge. The courtās decision reinforces the bankās position that the sale was conducted fairly and in line with proper valuation methods. The properties sold for more than the bankās independent estimates, closing the case without further recourse.
