SETTLEMENT TALKS have failed to resolve a legal dispute between AIB and several former senior executives whom the bank has accused of secretly scheming to take over its international financial services business, the High Court has heard.
AIB claims the executives were behind a management buyout offer for AIB International Financial Services (IFS). When AIB decided last June to sell the business to another group, Capita, the six set up a rival business to take over the clients, business and staff of IFS, the bank alleges.
The six – 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 – deny AIB’s claims and have denied any wrongdoing.
AIB claims that, after 25 directors and employees left IFS between June and August, Capita reduced from €55 million to €33 million its offer for IFS. It claims the defendants’ alleged actions led to it incurring significant loss and damage.
Mediation talks took place between the parties late last week but Mr Justice Frank Clarke was informed yesterday that AIB’s application for injunctions against a number of the defendants, to continue pending the outcome of the trial, is to proceed.
Last month, AIB secured a temporary injunction requiring the defendants to preserve documents and computer records.
Mr Justice Clarke, who ruled on a number of preliminary issues yesterday, said the court would read affidavits in the case today and consider what was described as “a substantial and weighty” affidavit from Mr Diamond on Wednesday.
Lawyers representing the other defendants had expressed concern that Mr Diamond’s affidavit was only given to them at 2pm yesterday, just as the case was scheduled to open. They said they had had no time to consider fully the affidavit which, the court was told by Oisin Quinn SC, for Mr Walsh, appeared to show Mr Diamond had “cut a deal” with AIB.
Mr Justice Clarke ruled Mr Diamond’s affidavit was not to be opened until Wednesday, after the other defendants had an opportunity to reply to it.
After the affidavit evidence, the court will hear an application by one of the defendants, Andrew O’Shea, aimed at having AIB’s interim injunction dismissed on grounds the bank allegedly failed to disclose important facts when it sought the injunction.
The hearing is expected to last three days.
