Gayle Killilea Dunne fails in move to quiz US lawyer

Wife of bankrupt developer Sean Dunne wanted to cross-examine lawyer of US bankruptcy trustee in Dublin in effort to stop Irish proceedings

Gayle Killilea Dunne, wife of bankrupt developer Sean Dunne, has failed to get High Court orders allowing her lawyers to cross-examine an attorney representing the official dealing with Mr Dunne's US bankruptcy.

Ms Dunne sought the cross-examination as part of her bid to halt proceedings brought against her in the Irish courts by Chris Lehane, the official administering Mr Dunne's Irish bankruptcy.

The High Court proceedings arise over alleged invalid transfers to Ms Dunne of various of her husband’s assets, including a hotel in South Africa valued at more than €18 million.

Ms Dunne, with an address at Greenwich, Connecticut, wants the proceedings brought by Mr Lehane against her discontinued on grounds including that the transfers are already subject of bankruptcy proceedings in the US.

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Mr Dunne filed for bankruptcy in March 2013 in the US state of Connecticut, where he was based. In July 2013, he was adjudicated bankrupt in Ireland.

As part of her bid to halt the Irish proceedings against her, Ms Dunne sought permission to cross-examine Timothy Miltenberger, a lawyer representing Richard Coan, the trustee dealing with Mr Dunne's US bankruptcy.

Mr Miltenberger has provided two sworn statements for Mr Lehane’s proceedings addressing a number of issues, including points of US law, the court heard.

Mr Lehane opposed the cross-examination application and also argued, if Mr Miltenberger was to be cross-examined, the evidence of Ms Dunne’s US lawyer Alec Ostrow should also be tested before the Irish court.

In her judgment on Friday, Ms Justice Caroline Costello ruled Mr Miltenberger’s cross-examination was not necessary and therefore the application to cross-examine Mr Ostrow did not arise. The judge adjourned the matter to next week.

Mr Lehane’s proceedings against Ms Dunne relate to two alleged agreements between Sean Dunne and his wife in 2005 and 2008. The alleged agreements relate to assets including the Lagoon Beach Hotel, Cape Town, South Africa and interests in assets including properties in Dublin and Co Wicklow as well as a property at Shrewsbury Road, Dublin.

Mr Lehane claims the alleged agreement has no legal status.

Ms Dunne contends the Irish proceedings in respect of the alleged transfer are oppressive and wants any challenge to the alleged transfer determined by the US courts.

In her defence, Mrs Dunne says she is legally married to, and is the employer of, Mr Dunne, has been a US resident since 2010 and divides her home between the US and Britain where she has business interests.

Prior to getting married, the couple agreed, if she married Mr Dunne and started a family with him, he would immediately transfer a portion of his wealth to her, she claims.

Agreements were reached between herself and Mr Dunne in March 2005 and in 2008 and a formal share transfer took place in October 2008, she claims. The transfers were entered into as compensation for Ms Dunne when she and Mr Dunne had started a family for her career as a journalist and prospective career as a lawyer, she alleges.