The High Court has refused an application by the Flood Tribunal to cross-examine Dublin West TD Liam Lawlor.
Mr Frank Clarke SC for the tribunal asked the court this morning to compel Lawlor to give detailed evidence over his alleged failure to produce documents requested to the tribunal.
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However, Mr Justice Thomas Smyth ruled that cross-examination of Lawlor could lead to a "situation causing more harm than good to both parties".
He said the High Court was "not the arena" for such examination of Lawlor's financial affairs, which were best dealt with by the Flood Tribunal.
Mr Justice Smyth said he anticipated further production of documents by Lawlor and therefore calling him to the witness box at this stage would be inappropriate. The court was merely concerned with whether or not Lawlor had complied with the original High Court order in July that he give full disclosure of documents to the Flood Tribunal.
Mr Justice Smyth added: "The question is: Are the documents in and, if not, why not and where are they?"
Earlier this morning, lawyers acting for Lawlor decided not to proceed with an appeal in the Supreme Court where they were expected to ask it to overturn yesterday's High Court decision that it has jurisdiction to continue its inquiry.
Mr Justice Smyth also ruled the High Court had the power to invoke the rest of a suspended jail sentence of three months it imposed on Lawlor last July if he was found in breach of orders to provide full disclosure of financial documents, as requested by the tribunal.
Lawlor’s legal team had argued this sentence, of which he has already served two separate seven-day terms in Mountjoy prison, was now spent.
Mr Justice Smyth rejected the submission but granted leave to Lawlor to appeal his decision to the Supreme Court.