Independent TD Beverley Flynn has until the middle of next month to pay a total bill of €1.225 million to RTÉ in settlement of her legal costs bill arising from her unsuccessful libel action against the broadcaster, the High Court heard yesterday.
Had the station's bankruptcy proceedings gone ahead against Ms Flynn, it was unlikely RTÉ would have secured more than €300,000, the court was also told.
The court was told yesterday that the Co Mayo TD has until August 17th to pay the sum, recently agreed as part of a settlement with RTÉ of its proceedings which could have led to Ms Flynn being declared a bankrupt.
RTÉ had initially sought legal costs of €2.3 million, plus interest of some €500,000, after Ms Flynn's lengthy but ultimately unsuccessful libel action of 2001. It initiated bankruptcy proceedings over the TD's failure to pay.
Shortly after the bankruptcy action was commenced, the High Court was told Ms Flynn proposed to challenge the provisions of the Electoral Act under which an undischarged bankrupt may neither contest Dáil elections nor be a member of the Dáil.
However, last month Ms Flynn announced she had reached a settlement with RTÉ, and the settlement was confirmed yesterday in Court No Six of the Four Courts.
Cian Ferriter, for RTÉ, told Ms Justice Elizabeth Dunne it would not "come as a huge shock to know" that the matter between RTÉ and Ms Flynn had been settled.
Counsel said there had been "considerable public debate" on the terms of settlement, but, out of courtesy to the court, RTÉ had not wanted to reveal the terms until the matter was back before the High Court yesterday.
He then read out the settlement terms which included a provision that Ms Flynn is to pay RTÉ €1.225 million before August 17th. It was also agreed that the bankruptcy petition be adjourned to October 8th.
If payment was not made by August 17th, Ms Flynn acknowledged the bankruptcy proceedings would go to hearing on October 8th, Mr Ferriter said. However, if the € 1.225 million was paid in full the proceedings would be struck out on that same date.
Mr Ferriter went on to say that RTÉ was conscious there was considerable public interest in this matter, and he wanted to make some points.
At that stage, Ms Justice Dunne said she was dealing with an application, and she was not there to provide a forum for RTÉ and Ms Flynn. If the matter was settled, "so be it", but the court was not providing a public platform and forum for the parties.
Mr Ferriter said he would like to make a legal point to the effect that, had Ms Flynn been adjudicated to be bankrupt, RTÉ would only have been able to realise assets from Ms Flynn herself.
Ms Flynn's assets related to a €300,000 house, and the settlement secured by RTÉ was four times that amount.
Ms Justice Dunne said that was not a legal point, and counsel should not "go down that road".
She adjourned both the bankruptcy petition and Ms Flynn's constitutional challenge to October 8th, when the court will be told if the money has been paid to RTÉ by August 17th.
The question of costs in relation to the applications in the High Court is also likely to be examined on October 8th.
The court had previously heard that Ms Flynn had offered to pay just €590,000 or 20 per cent of the legal bill due to RTÉ following her failed libel action, and had not paid anything after RTÉ refused that offer.
The legal costs bill arose after Ms Flynn, then a Fianna Fáil TD but now an Independent deputy, lost her 28-day 2001 High Court libel action against RTÉ journalist Charlie Bird and farmer James Howard.
She also failed in her appeal to the Supreme Court against that decision. That appeal was dismissed in 2004.
Both courts awarded costs against Ms Flynn, and these costs were certified in September 2005 by the High Court taxing master.
Ms Flynn, a former financial adviser with National Irish Bank, had alleged she was libelled in six RTÉ broadcasts in 1998 which reported that, as an employee of NIB, she had encouraged or assisted a number of persons in tax evasion.