Judge Peter Kelly recuses himself in O’Donnell case

Solicitor Brian O'Donnell and his son Blake have objected to two different Commercial Court judges hearing an application in proceedings by Bank of Ireland against them, Mr O'Donnell's wife and another son, Bruce.

Brian O'Donnell and Blake, in two separate letters sent earlier this month, had asked Mr Justice Peter Kelly to recuse himself, the judge outlined to the court today.

While stressing he did not accept there was either any legal or factual basis for doing so, he would recuse himself, he said. That was both to ensure a speedy hearing and in the context of a 2007 UK court decision involving the BBC where it was stated, even if a judge believed a recusal request should be refused, it could be granted if another judge could be quickly found to hear the case, he said.

In the circumstances, Mr Justice Kelly said he was sending the matterto Mr Justice Brian McGovern and the president of the High Court, Mr Justice Nicholas Kearns, had said he was happy with that proposed course of action.

Bank of Ireland was seeking to set down a timetable for the hearing of its action against Brian O'Donnell, his wife, Mary Patricia O'Donnell and their adult sons Blake and Bruce alleging fraud against them over allegedly consipiring to put in place a "blatant scheme" to put a London property asset beyond its reach.

BoI secured a €70 million judgment against the couple in December 2011 and has been engaged in proceedings aimed at recovering judgment.

When the matter came before Mr Justice McGovern this afternoon, Blake O’Donnell asked the judge to recuse himself from the case.

Mr O’Donnell said the judge’s wife had been invovlved in a partnership dispute, there had been borrowings with Bank of Ireland and Mr Justice McGovern and his wife had a mortgage with the bank.

Brian O’Donnell said they were not implying any impropriety.

Mr Justice McGovern replied he was not going to recuse himself. He said he had no involvement with the partnership and all borrowings had been discharged. While he and his wife had had a mortgage with the bank, that and another borrowing had all been paid off. He had a current and deposit accounts with Bank of Ireland but no borrowings or shareholdings.

Ireland is such a small country that,if everybody who had an account in a bank was asked to recuse themselves,nothing would ever get done, he added.

Cian Ferriter SC, for BoI, said all four O'Donnells had lodged defences and counter claims to the bank's action. His side contended the counter claim was an abuse of proceess and would seek to have it struck out and also contended Mr and Mrs O'Donnell, as bankrupts, could not legally defend the bank's action.

Mr Ferriter said the bank was very anxious to get the case was admitted to the Commercial Court in 2012. It includes allegations of fraud arising from dealings of the defendants relating to a property at Columbus Courtyard in London.

Mr Justice McGovern directed a timetable for exchange of documents and will hear the bank’s motion on the counter-claims in late October.