Bank ordered to give 65 clients' names to RTE

The High Court has directed National Irish Bank to give lawyers for RTE and a journalist, Charlie Bird, the details of 65 customers…

The High Court has directed National Irish Bank to give lawyers for RTE and a journalist, Charlie Bird, the details of 65 customers alleged to have benefited from an investment scheme introduced by the Fianna Fail TD, Ms Beverly Cooper Flynn.

Mr Justice Kelly yesterday put a one-week stay on his order against the bank, to allow time for consideration of an appeal.

RTE had sought the names in preparing its defence against an action by Ms Cooper Flynn, who claims she was libelled by allegations in RTE interviews. Ms Cooper Flynn, who denies the allegations, has worked for NIB since 1989 and is on leave of absence.

She is suing RTE, Mr Bird and a retired farmer, Mr James Howard, of Drogheda, Co Louth. She alleges that between June 19th and July 1st, 1998, she was libelled in broadcasts and that words used in RTE interviews were understood to mean she had advised and induced Mr Howard to evade his obligation to pay tax by investing money in a particular way.

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RTE had said it wished to subpoena all 65 clients identified as having been introduced to and/or who bought Clerical Medical International personal portfolio investments through Ms Cooper Flynn's introduction while an NIB employee. NIB and the TD had opposed revealing the 65 names.

In his reserved judgment yesterday, Mr Justice Kelly said it was alleged that Ms Cooper Flynn had advised or encouraged Mr Howard and other unnamed investors to participate in an investment scheme which had as its purpose the evasion of tax liabilities in this State.

It was alleged that she advised them, inter alia, that they did not need to avail of the tax amnesty then available as the Revenue Commissioners would never find out about their money in the scheme.

RTE had reported Ms Cooper Flynn's categoric denial that at no time in her seven years with the bank had she ever encouraged anyone to invest in a financial product to evade tax.

Mr Justice Kelly said all the defendants had pleaded justification. On the present application, he was concerned with the defence of RTE and Mr Bird.

Discovery proceedings last December had disclosed the existence and contents of the 65 files. Mr Justice Johnson had restricted access to these files to certain lawyers for RTE and directed the names and addresses of the clients be masked. RTE later sought to have the names and addresses "unmasked", but this was opposed by NIB and Ms Cooper Flynn.

The TD had contended that such an order would give RTE and Mr Bird an unfair advantage.

The judge concluded that disclosing the NIB clients' identities to RTE and Mr Bird would give them a litigious advantage, but to deny them this entitlement would not be conducive to the fair disposition of the action.

He noted that Ms Cooper Flynn had full advantage of both the identity and the commercial affairs of her clients, whereas RTE and Mr Bird had very limited knowledge of their identity.

In coming to this conclusion he, of course, bore in mind the undoubted duty of confidentiality which existed, Mr Justice Kelly said, and he would take appropriate steps to mitigate the loss of confidentiality which would be involved.

He directed that the names, addresses and details of the customers may be revealed only to solicitors and counsel for RTE and Mr Bird, and to three members of RTE's legal department.

The judge granted NIB the costs of yesterday's motion against RTE. Other costs were left over to the trial of the action, listed for July 4th.