IBRC liquidators will not object to Quinn case against bank

The special liquidators of the Irish Bank Resolution Corporation (IBRC) will not object to the case against the bank by the family of bankrupt businessman Seán Quinn going ahead, the Commercial Court was told yesterday.

Solicitors for the liquidators have told the Quinns’ lawyers they believe the provision in the Act introduced recently to facilitate the liquidation of the bank and which “stays” all proceedings against the bank, “must be construed on the basis that the stay was not intended to be permanent”.

A hearing is to go ahead next month to decide whether the courts have jurisdiction to lift the stay in the Act, which has halted all “existing” proceedings against the bank. About one-third of existing cases in the Commercial Court are against IBRC.

Mr Justice Peter Kelly, who had previously said there is an issue whether the Act permits the courts to lift the stay, said that issue will have to be decided as it has ramifications not just for the Quinn action but for other cases.

Immediate stay

The IBRC Act providing for the liquidation of IBRC, formerly Anglo Irish Bank and Irish Nationwide, was enacted earlier this month. Section 6.2.a of the Act provides for an immediate stay on all “existing” proceedings against IBRC and Mr Justice Kelly previously noted the Act also disapplies provisions that normally allow the courts to lift such stays. The Quinns had applied to have the stay on their action lifted and the judge has fixed for hearing the issue of whether the courts can lift it for March 7th .

Lawyers for the Quinns told the judge last week they would challenge the constitutionality of the Act if the courts are found to have no power to lift the stay.

Yesterday, Martin Hayden SC, for the family, said he wanted to bring to the court’s attention a letter received earlier this week from McCann Fitzgerald, solicitors for IBRC.

In the letter, the solicitors referred to the Quinns’ application to lift the stay on the family’s case. The letter stated IBRC accepts the Quinns have an entitlement to pursue their case and to have it decided by the court.

Affidavit evidence

On that basis, IBRC did not object to the Quinns’ application to have the stay lifted and would not be filing affidavit evidence in response to that application, the letter stated.

The solicitors also said IBRC would submit at the March 7th hearing that the court has inherent jurisdiction to lift the stay in relation to existing proceedings (against IBRC) and Section 6.2.a “must be construed on the basis that the stay was not intended to be permanent”.