AIB action against ex-executives seeks to 'freeze competition'

COURT ORDERS being sought by AIB against six former executives were aimed at freezing competition and would have profound effects on business operations in Ireland, Luxembourg, Switzerland and Hungary, the High Court was told yesterday.

AIB has claimed the six conspired with a rival business to take over the clients, business and staff of AIB’s International Financial Services business when it moved last June to sell it to another group, Capita.

The bank has also brought High Court proceedings against a number of financial services companies – Centralis SA based in Luxembourg, Centralis Switzerland and Centralis Hungary – which AIB claims were also involved in the plan.

In proceedings before Mr Justice Frank Clarke, AIB is seeking orders against the six, including orders restraining them using information of AIB IFS against it or approaching AIB IFS clients for a specified period.

Opposing those orders, Paul Gallagher SC, for Centralis, argued the injunctions being sought would have profound effects on business operations in Ireland, Luxembourg, Switzerland and Hungary, would hit his client’s business “at the critical formative stage” and prevent the company operating the business as it was entitled to do.

AIB, he argued, was seeking to freeze competition and was not entitled to do so.

Counsel argued there was no serious issue in relation to confidential information and the defendants were “entitled to work” and do their jobs.

Counsel also said his clients denied claims they had received confidential information or trade secrets belonging to AIB IFS.

The six former executives are: Pat Diamond, Elton Park, Sandycove, Dublin; Aidan Foley, formerly of Grawn, Kilmacthomas, Wexford; Gerry McEvoy, formerly of Shandon Park, Phibsboro, Dublin; Derek O’Reilly of Fernleigh Drive, Castleknock, Dublin; Andrew O’Shea, formerly of Ashbrook House, Julianstown, Co Meath; and Joe Walsh, formerly of Grosvenor Terrace, Monkstown, Co Dublin.

The defendants deny AIB’s claims and have denied any wrongdoing. They also claim AIB’s actions were preventing the corporate defendants competing against AIB IFS.

AIB has claimed that Capita reduced its offer for IFS from €55 million to €33 million after 25 directors and employees left IFS between June and August.

An application by one of the defendants, Andrew O’Shea, to have an interim injunction obtained against him dismissed on grounds the bank had not disclosed all relevant matters to the court was withdrawn yesterday on terms. Those terms are that Mr O’Shea not approach any clients of AIB IFS for a period of 12 months, hand over all computers records, laptops and memory sticks in his possession to AIB for inspection and resign from Centralis. After the inspection, AIB would discontinue its proceedings against Mr O’Shea, the court heard.

The hearing resumes today.