A US-based director of Elan who is ill is to give evidence by video link to court proceedings here brought by Elan's former chief executive and chairman Donal Geaney against the company.

The dispute concerns claims by Mr Geaney regarding his entitlement to exercise share options.

At the High Court (Commercial Division) last week, Mr Justice Kelly suggested to lawyers in the case that the evidence be taken by video from Dan Tully rather than having "a battery of lawyers" arrive at his home to take his evidence.

Lawyers for both sides told the judge yesterday that they were agreeable to his suggestion and the judge fixed April 11th for a sitting before him to take the evidence by video from Mr Tully.

The video link will be with Mr Tully who will be in Stanford, Connecticut.

The video evidence will be slotted into the full hearing at a later date of the action, in which Mr Geaney is claiming he has been denied share options entitlements, which could exceed $12 million (€9 million).

It is claimed by Mr Geaney that he was given a remuneration package in November 1989 which included share options. Following his removal from office in 2002, it is submitted, he had a phone conversation with Mr Tully and Elan chairman Dr Garo Armen, who confirmed he would be treated in the same manner as other senior executives who had left or would be leaving the company.

Mr Geaney claims the agreement meant he would have 24 months from the date of termination of his employment in which to exercise his share options and that Elan wrongfully and in breach of agreed terms purportedly asserted that he was not entitled to exercise the share options held by him.

The company claims Mr Geaney's primary concern at the time of his departure was to be given as long a period as possible to allow the share price an opportunity to recover, so his share or stock options would have some value.

To that end, Elan claims, Mr Geaney was granted a new two-year employment contract with the relationship being severed at the end of that contract.

At no stage did any negotiations take place in respect of extending the option exercise period post termination, it is submitted.

The proceedings are to be mentioned in court again on April 8th next to deal with preliminary matters in the case.