AIB HAS secured court orders restraining three former executives and a rival company soliciting any clients or staff of AIB’s International Financial Services business for a six month period.
The bank was refused similar orders against three other former executives and Mr Justice Frank Clarke also stressed that potential clients were free to approach any of the defendants of their own volition, once they had not been solicited to do so.
The judge was giving his decision on AIB’s application for a series of injunctions against the six pending the outcome of a full hearing of the bank’s claim that they and a number of European-based financial services companies were involved in secretly scheming to take over its international financial services business.
The six individuals, all former executives of AIB, and the three defendant companies – Centralis SA based in Luxembourg, Centralis Switzerland and Centralis Hungary – had all denied the bank’s claims.
The six individuals are: Pat Diamond, Elton Park, Sandycove in Dublin; Aidan Foley, formerly of Grawn, Kilmacthomas, Wexford; Gerry McEvoy, formerly of Shandon Park, Phibsboro, Dublin; Derek O’Reilly, Fernleigh Drive, Castleknock, Dublin; Andrew O’Shea, formerly of Ashbrook House, Julianstown, Co Meath; and Joe Walsh, formerly of Grosvenor Terrace, Monkstown, Co Dublin.
Yesterday, Mr Justice Clarke said he was prepared to grant the bank certain orders against some of the defendants but was refusing other orders.
He made orders prohibiting Mr Foley, Mr McEvoy and Mr O’Reilly and the corporate defendants soliciting any employees of clients of AIB IFS for six months. Those orders applied only to clients of AIB IFS allegedly solicited by the defendants, not to those clients who themselves initiated contact with the defendants without being solicited, he said. The judge said it was not appropriate to make similar orders against Mr Diamond, Mr Walsh or Mr O’Shea.
He also refused to make orders prohibiting the use by the defendants of what AIB claims is confidential information. The terms of such orders were “too wide” and would lead to confusion as it was unclear what was the alleged “confidential” information and what was not, he said.
The judge invited AIB to resubmit its application concerning the alleged confidential material and said the parties could consider that before the matter returns to court. Mr Justice Clarke also said he would give the full reasons behind his rulings later this week and adjourned the matter to next week.
In its action, AIB has claimed the executives unlawfully conspired with a rival business to take over the clients, business and staff of AIB’s IFS business after the bank moved last June to sell the IFS business to another group, Capita.
It is claimed the executives put a scheme referred to as “Plan B” into operation after a management buyout of IFS did not take place. The bank claims that, after 25 directors and employees left IFS between June and August, Capita reduced its offer for IFS from €55 million to €33 million.
The defendants have denied AIB’s claims, deny any wrongdoing and deny that confidential information belonging to AIB was passed on to a rival.
They also claim there was no non-compete clauses in their contracts of employment. It is also alleged AIB’s actions were preventing the corporate defendants competing against IFS.
