Developer loses fraud action over Baily Point

Date Published: 23-Dec-2008

The original developer of the Baily Point complex in Salthill has lost a landmark €393 million fraud action against First Active bank in the High Court.

Brian Cunningham of the Cunningham Group – which originally owned the complex – is involved in a series of legal actions including claims that First Active caused his companies to collapse, the loss of Baily Point and the loss of a €395 million property deal in Dublin.

The High Court’s Commercial Court – known for its speedy and ‘no nonsense’ approach to litigation – was told that the Cunningham Group had been “starved” of funds, which the bank strenuously denied.

Mr Cunningham initiated the proceedings against First Active several years ago, seeking damages totalling more than €160 million through a claim that the bank pulled the plug on Baily Point and caused the Cunningham Group to collapse.

He has also accused First Active of fraud and that the bank removed him from any managerial role within his own company.

Mr Cunningham’s legal team also…