RTÉ pursues TD over €1.5m libel case costs

Beverley FlynnRTÉ has said that bankruptcy proceedings initiated against re-elected Mayo TD Beverley Flynn were taken as a last resort.

A spokesman for the national broadcaster said it had exhausted every other avenue to obtain its legal costs, estimated at €1.5 million plus interest, awarded against Ms Flynn following a 28-day libel action she took and lost in 2001.

Legal representatives for RTÉ, Eugene F Collins solicitors, filed the petition to have the Independent TD declared bankrupt last Thursday. If Ms Flynn is declared bankrupt, she will not be allowed to continue as a TD. Under the Electoral Act, 1992, an undischarged bankrupt is disqualified from membership of Dáil Éireann.

Ms Flynn had alleged she was libelled in six RTÉ broadcasts in 1998 which reported that, as an employee of National Irish Bank, she had encouraged tax evasion. The action failed and the High Court taxing master awarded RTÉ and its chief news correspondent Charlie Bird €1.5 million in costs in 2005.

Interest on that sum is estimated at €12,000 a month, and has been accruing for two years.

As well as the money owed to RTÉ, Ms Flynn owes a further substantial sum to farmer James Howard, whom she also sued unsuccessfully. She also has her own legal costs to deal with. It is understood that Ms Flynn offered her home in Castlebar in settlement of the case, but this was rejected.

A spokesman for RTÉ yesterday confirmed that the petition had been filed.

"This is the next stage in our attempt to get our costs from Ms Flynn. We've exhausted every other avenue, so we've had no choice but to take this route," he said.

"She is the subject of a court order, which awarded legal costs against her, and unless she offers a settlement in the meantime, she will be declared bankrupt."

He said that bankruptcy was a lengthy process, and the declaration of bankruptcy would not happen quickly.

He added that the only way out for Ms Flynn was to come up with a realistic settlement offer.

Ms Flynn could not be contacted for comment yesterday.

Under Irish law, a person is declared bankrupt when he or she is unable or unwilling to pay debts and his or her property and assets are transferred to a trustee to be sold. Any assets, including a family home, could be sold in order to pay creditors.

The name and address of every bankrupt is entered into the Bankruptcy Register and the person must identify himself or herself as a bankrupt if applying for credit for € 650 or more.

A bankrupt cannot be a director in a company without the permission of the court, or hold elected office.