O’Flynns’ Nama case gets fast-tracked to Commercial Court

The National Assets Management Agency (Nama) and a company of the agency “very much deny” claims they leaked “confidential” information of businessmen Michael and John O’Flynn and their company O’Flynn Construction Ltd, the Commercial Court has been told.

Mr Justice Brian McGovern, who had queried whether the O’Flynns’ case had sufficient commercial law aspects to warrant being fast-tracked in the Commercial Court, said on Monday he was satisfied to transfer the case to the commercial list.

Sums

The judge was earlier told by Michael Cush SC, for the O’Flynns, the information at issue was financial, personal and corporate, and the sums involved were very large, relating to assets worth “hundreds of millions” of euro.

That information, as far as his side was aware, was disseminated to four identified entities and his clients’ claim was that undermined the marketing strategy which Nama had agreed with them, counsel said.

Paul Sreenan SC, for Nama and National Assets Loan Management Ltd, said his clients were neutral whether the case was fast-tracked or not, but "very much deny" the claims, "especially the claim that the information was confidential".

The court was told the O’Flynns’ case is also against Enda Farrell, a former employee of Nama, and he had been served with the proceedings. Mr Cush said his side had been told a solicitor, Robert Dore, was likely to come on record for Mr Farrell.

Documents

Having heard the sides, Mr Justice McGovern said he would transfer the case to the Commercial Court. He also approved directions for exchange of legal documents between the sides and said Mr Farrell has liberty to apply if he wished to raise any issue in that regard. A hearing date will be fixed later.

The case arose after Nama acquired loans advanced to the brothers’ companies in 2010 and the parties had engaged in a major restructuring process.

In their action, the O’Flynns say that Mr Farrell, with an address in Belgium, pleaded guilty before Dublin Circuit Court last May to eight counts of unlawfully disclosing information and was given a two-year suspended sentence.

In July, Nama confirmed to the O’Flynns and their company information about them had been leaked by Mr Farrell, it is claimed.

Impact

The O’Flynn side claim the alleged leaks had a material and depreciative impact on prices achieved by both them and Nama in relation to disposal of assets from 2010-2013 and a significant loan sale in 2014.

They say they cannot quantify their claim pending further investigations and need certain documents from the defendants.

After they wrote to Nama seeking the documents, Nama told them that it was seeking guidance from the Garda Bureau of Fraud Investigation. The O’Flynns’ lawyers then asked Nama to confirm, subject to there being no objection from gardaí, it would provide the plaintiffs with the documents but no reply was received, it is claimed.

The O’Flynns believe Nama will not provide them the documents sought and are claiming damages for alleged breach of confidence, statutory duty and misfeasance in public office.