Quinn row with Anglo referred to Europe

THE EUROPEAN Court of Justice is to be asked its opinion on whether Ireland or Cyprus has jurisdiction to rule on a dispute between Anglo Irish Bank and members of Seán Quinn’s family over alleged moves to put certain foreign property assets beyond the reach of the bank.

Mr Justice Frank Clarke made the ruling in the High Court yesterday while also declining a separate application from the Quinn family in this matter.

The judge decided that there was insufficient guidance within article 28 of the Brussels Regulation, which deals with jurisdictional issues relating to commercial litigation, and an absence of relevant case law for him to make a determination in the case. He said the “best course of action is to obtain definitive guidance in the form of a reference to the ECJ”.

“It is not my intention, at this stage, either to dismiss or to stay these proceedings,” he added. “Rather, I have determined that it is appropriate to seek the guidance of the ECJ.”

Mr Justice Clarke asked both sides to try and agree a position on what questions should be put to the court. He set October 3rd as the date for the case to be next mentioned in court. In the intervening period, he said the interlocutory injunction preventing the Quinns from changing the structure of their international businesses would remain in force.

It is not clear how long the court might take to make a determination on this matter but the expectation yesterday was that it could be a considerable amount of time.

A court hearing in Cyprus on a similar issue of jurisdiction, family, is set to proceed tomorrow.

Mr Justice Clarke said it was not the “function” of the High Court to “interfere” with the proceedings in Cyprus.

Anglo will ask the court in Nicosia to decline jurisdiction on the matter.

“It is clearly a matter for the Cypriot courts to decide that question,” the judge said.

Anglo has accused the Quinn family members of involvement in a “sinister conspiracy” to put assets in Ukraine, Russia, Sweden, India and Cyprus beyond Anglo’s reach.

The bank is owed €2.8 billion by the Quinns.

Anglo obtained injunctions earlier this year restraining Seán Quinn; his daughters Ciara, Colette, Brenda and Aoife; his son Seán; his nephew Peter; sons-in-law Stephen Kelly and Niall McPartland; and Quinn Investments Sweden and Indian Trust from making changes to their overseas business structure.

The legal dispute began on May 16th when the Quinn children and their mother Patricia took proceedings against Anglo in relation to the appointment of a share receiver to Quinn Group, Kieran Wallace of KPMG.

This move by Anglo effectively wrested control of the Quinn Group from the family.

Anglo argued that it was entitled to seek protection from the Irish courts because the defendants were resident here and the original loan agreements and securities were subject to Irish law.

The Quinns questioned whether an Irish court was the best place to decide matters relating to companies that were registered in other jurisdictions.

In his judgment, Mr Justice Clarke noted that Anglo and Quinn Group were “apparent stars” of the Celtic Tiger. He said there was, at least, a “partial connection” between the problems of the two companies.

“At certain times, the Quinn Group made significant (and ultimately disastrous) investments in Anglo. In that context, it is perhaps not surprising that litigation between Anglo and members of the Quinn family and companies associated with them has ensued.”