The wife and five children of businessman Sean Quinn have lodged a High Court action seeking damages against Anglo Irish Bank over alleged negligence, breach of duty and intentional and/or negligent infliction of economic damage.
The damages claim arises from events of the past two years that led to the family losing control of the Quinn group of businesses and is believed to amount to a claim for hundreds of million euro.
In proceedings against Anglo and receiver Kieran Wallace, the family are seeking to overturn the appointment of Mr Wallace by Anglo as receiver over shares held by them in the Quinn Group and various related companies.
They claim that charges made in favour of Anglo from late 2003 up to 2009 over shares held in Quinn Group (ROI) Ltd, Quinn Quarries Ltd, Slieve Russell Hotel Ltd, Quinn Finance Holding, Quinn Group Hotels Ltd and Quinn Group Prperties Ltd are invalid, uneforceable and of no legal effect.
The appointment of Mr Wallace on April 14th last as receiver over those shareholdings on foot of the disputed charges is also invalid and unenforceable, the family claim. They want orders restraining him acting as receiver and setting aside his appointment.
They also want declarations that undated guarantees provided by them to Anglo over the liabilities of several Cyprus-registered companies are invalid and unenforceable. Those companies are Lud Investments Ltd, Moshaid Investments Ltd, Opawa Investments Ltd, Pahu Ltd, Tarate Enterprises Ltd and Morboneto Holdings Ltd, all with registered offices at Capital Centre, Nicosia.
The proceedings by Patricia Quinn and her children - Sean jnr, Brenda, Aoife, Colette and Ciara - were lodged in the High Court this week and it is expected an application will be made within weeks to have the case fast-tracked by the Commercial Court. The family are being represented by Brian O’Moore SC, Bill Shipsey SC and Rossa Fanning BL.
The five children are equal shareholders in Quinn Group (ROI), the parent company for the various manufacturing, financial services and leisure businesses that were owned by the family. All of the children except Ciara work in businesses in the group.
Anglo appointed a receiver over the company’s shares in Quinn Group (ROI) last month, taking control of the business with banks and bondholders, who are owed €1.28 billion by the group. The Quinn family owe Anglo €2.88 billion.
Further legal proceedings are under consideration by the family include a possible challenge to the validity of the regulator’s decision in March 2010 to seek the appointment of joint administrators to Quinn Insurance Ltd (QIL).
