Action against AIB Bank by 300 investors

Actions for damages have been initiated which involve almost 300 investors in property funds promoted by Allied Irish Banks.

The investors are claiming damages on grounds alleging negligence, breach of contract, breach of fiduciary duty, negligent mismanagement and misrepresentation by AIB and other parties over the operation of several investment funds, known as the Belfry funds, relating to commercial property in the UK.

The court heard the individuals invested sums between €50,000 and €200,000 in the funds between 2002-2006.

The actions are against Allied Irish Banks Plc and several other parties, including five companies known as Belfry Properties Plc, and their directors, including property investor Tony Kilduff and former head of AIB private banking John Rockett.

The action is also brought against other related companies including Tullamona Ltd, Leyally Ltd, Monsal Ltd, and Essex Trust Ltd.

The claims are denied.

When the proceedings came before Mr Justice Brian McGovern yesterday, he agreed to have several cases brought by investors admitted to the Commercial Court.

The application to have the matter fast-tracked was made by the bank which, the court was told, has concerns about the manner in which the cases have been advanced. The bank says it has little or no insight into the claim being advanced other than what was set out in the plenary summons.

AIB wants the statement of claim to be served on it immediately.

The matter has been adjourned to next month.