ANGLO IRISH Bank is expected, following a High Court ruling in proceedings against a former head of lending, to have to discover internal documents about controversial loans to businessman Seán Quinn.
The loans were to fund his liabilities concerning transactions made to fund the purchase of shares in the bank itself.
Mr Justice Peter Kelly this week ruled that Tom Browne, Anglo’s managing director for lending in Ireland in 2005-2007, may defend the bank’s claim against him over €50 million of unpaid loans on grounds including the bank was guilty of fraudulent misrepresentation in allegedly failing to tell him in 2007 about the purchase of 28 per cent of its shares by Quinn.
That decision means the action against Mr Browne will go to a full plenary hearing at the Commercial Court for which, the judge observed, discovery is expected to be sought.
Mr Justice Kelly, in refusing summary judgment, said there should be a full plenary hearing because it was not clear Mr Browne had no defence. He stressed he was not finding Mr Browne had a defence which “must or even probably” succeed.
It also emerged Mr Browne received a total of €8.19 million in salary and benefits from Anglo while head of lending.
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