Quinns seek to ease ‘hugely oppressive’ asset-freezing orders

Members of businessman Seán Quinn's family want the High Court to vary "hugely oppressive" four-year-old orders freezing their accounts and assets below €50 million.

The businessman’s five adult children and three of their spouses, Stephen Kelly, Niall McPartland and Karen Woods, claim the value of their assets is not, and was never, “remotely close” to €50 million and the orders are affecting their normal lives, including efforts to get employment, be paid salaries, get a mortgage or remortgage property.

The extent and duration of the orders in their cases are punitive, they claim. The orders were granted by the High Court in July 2012 to State-owned Irish Bank Resolution Corporation (IBRC) following its takeover of loans advanced to Quinn companies by Anglo Irish Bank.

The role of joint receivers Declan Taite and Sharon Barrett, also appointed in 2012 over assets and accounts of the Quinns, was described as effectively policing compliance with the freezing orders.

Variation

The orders were to apply pending the outcome of the bank’s proceedings alleging the Quinns conspired with others to put some €455 million of assets in their international property group beyond the reach of IBRC. Because of criminal proceedings involving Anglo executives, the conspiracy case has yet to be heard and the Quinns say it is unlikely to be heard before 2018 at the earliest, and more likely 2019 or 2020.

In these circumstances, the court should vary the freezing orders, they claim. IBRC opposes the application on grounds including alleged failure by the Quinns to co-operate with the receivers.

When the variation application came before Mr Justice Robert Haughton yesterday, he heard preliminary objections by Ross Aylward, for the Quinns, to the court hearing evidence from the receivers.

Ruling

The Quinns deny they have not co-operated with the receivers and oppose their variation application being “morphed” into a hearing concerning co-operation and disclosure, Mr Aylward said.

Michael Collins SC, for the receivers, said the case involved the “largest civil fraud” in Irish legal history and the claims of non-co-operation were very relevant. Brian Murray SC, for IBRC, said it was entitled to rely on evidence from Mr Taite concerning the alleged non-co-operation.

In his ruling, the judge said Mr Taite was one of two receivers appointed to ensure compliance with the freezing orders and the High Court had said it expected the receivers would get full co-operation.

In deciding whether to vary such orders, the issue of co-operation was relevant. The receivers were in a special position as officers appointed by the court and had been dealing directly with the Quinns over some four years, the judge said. the receivers should be represented and heard, he ruled. The hearing continues.