IBRC asks court to bring forward Quinn case

State-owned Irish Bank Resolution Corporation has asked a judge to direct that the Quinn family's action aimed at avoiding liability for €2.34 billion loans should open as soon as possible this year.

The case, initiated in 2011, was listed for trial on three previous occasions but deferred each time, the latest deferral being to January 2016.

The deferrals were granted by the Commercial Court on the application of the DPP who had concerns the case could affect separate criminal proceedings against various executives and officials of Anglo Irish Bank, IBRC's predecessor in title.

The Quinns' case was last listed to open on June 3rd of this year but was put off to January 2016 in the context of criminal proceedings against former Anglo Irish chairman Sean Fitzpatrick, due to start this month, but later deferred to May 2016.

At the Commercial Court on Wednesday, Paul Gallagher SC, for IBRC, asked that the Quinn case should go ahead earlier than January and as soon as possible.

Mr Gallagher noted Mr Fitzpatrick’s trial had been further adjourned to May 2016 and said IBRC was very anxious the Quinn case be dealt with.

Martin Hayden SC, for the Quinns, said his side also wanted the case to proceed but had concerns the DPP might again seek to halt it because of other proceedings against various officers and executives of Anglo.

The judge said he would hear IBRC’s application for an earlier hearing next week and indicated there may be a date available in early December should the application be granted.

He also asked that an affidavit be provided by the DPP outlining her position on the application and setting out her view on any overlap between this case and the other proceedings. Paul O’Higgins SC, who was in court for the DPP, said that affidavit would be provided.

The judge fixed October 14th for the hearing of IBRC’s application.

Last July, the Quinns and IBRC agreed to mediation of their dispute over liability for loans of €2.34 billion made by Anglo to several Quinn companies. No details concerning the mediation were provided to the court on Wednesday.

Preparations for the hearing of the action by Patricia Quinn and her five adult children have continued alongside the mediation.

They allege €2.34 billion in loans made by Anglo to various Quinn companies were for the unlawful purpose of propping up the bank’s share price. Following a Supreme Court decision last March, they cannot pursue other aspects of their claim alleging the loans are unenforceable.

IBRC previously joined Sean Quinn snr and two former senior Quinn Group executives, Dara O'Reilly and Liam McCaffrey, as third parties to the case. They deny they acted as agents of the Quinn plaintiffs concerning disputed share pledges and guarantees.

After the Official Assignee in bankruptcy declined in 2012 to defend the bank’s claim against Mr Quinn who, as a bankrupt at that point, could not personally defend it, the Commercial Court ruled the bank could seek judgment in default against Mr Quinn at the trial of the family’s action.

Lawyers for IBRC have since served a motion for judgment on Mr Quinn , seeking indemnity from him against any sums awarded to his family should they win their case or, without prejudice to the indemnity claim, damages for alleged misrepresentation, breach of warranty of authority, fraud, negligence and conspiracy.

The motion relates only to assets in the bankruptcy estate of Mr Quinn and any judgment is contingent on the family winning their case.