Quinn High Court case delayed after judge recuses himself

The hearing of the marathon action between Seán Quinn's five children and Irish Bank Resolution Corporation concerning loans of €2.34 billion has been delayed for a week after the High Court judge allocated to hear the case agreed not to do so.

Bernard Dunleavy SC, for the Quinns, told Mr Justice Michael Twomey on Thursday his side was objecting to the judge hearing the case, which was due to open next Tuesday, in light of his knowing socially one of the witnesses, a former official with Anglo Irish Bank, IBRC's predecessor in title.

That official is among 42 witnesses subpoenaed by the Quinns to give evidence, and they regard him as an important witness for their claims concerning lending by Anglo, the court heard.

Mr Dunleavy said, arising from information received from IBRC this week concerning the particular witness, his side was making the recusal application.

When the judge asked what was the position of the other side, Paul Gallagher SC, for IBRC, said, as a matter of law, the Quinns appeared entitled to object and he was instructed not to oppose the recusal application.

Mr Justice Twomey said he would accede to the application.

Earlier hearings

He stressed he had disclosed at earlier hearings he knew the particular witness as well as three other witnesses. Given there are so many witnesses in the case and Dublin is a small city, it was not surprising he knew some of the witnesses and he had told the parties so as soon as he knew the identities of the witnesses, he said.

He also noted three other judges of the Commercial Court had been unable to hear the case due to knowing some of the personnel involved. That was unsurprising given the long-running nature of the case, he said.

When he had previously informed the parties of his knowing some of the witnesses, he did not know what witnesses would be called to give evidence or about the perceived importance of their evidence in the case, he said.

He said the witness at issue is a former employee of the defence, but has been subpoenaed for the Quinns. They regard him as an important witness in respect of their claims concerning borrowings of the Quinn group secured by disputed charges and sureties.

The judge said, while he did not consider he had any conflict of interest as a result of his limited social contact with this witness or would be biased when considering his evidence, and was “firmly of the view” there was no actual bias on his part, the perception of bias was a separate issue.

Given his limited social contact with this witness, the judge said he would recuse himself.

Assign another judge

The parties applied minutes later to Mr Justice Robert Haughton, who manages the Commercial Court list, to assign another judge to hear the case and to relist it for March 12th.

Mr Justice Haughton said he would list it for that date and make every effort to procure another judge to hear it. The case is very important and has to proceed, he said.

The sides will be updated on Monday in relation to the progress made in allocating another judge.

In their action, initiated in 2011, the Quinns dispute any liability for loans of some €2.34 billion advanced by Anglo Irish Bank to Quinn companies.

A separate case by IBRC against various Quinn family members and other parties, alleging a conspiracy to strip some €455 million of assets from IPG companies in several countries, is due for hearing after the children’s action.

Both cases were put on hold for several years pending the hearing of criminal proceedings against various Anglo executives and officials.