Retired judge Mr Justice Joseph Finnegan has agreed to act as mediator in the long-running legal dispute between the family of businessman Seán Quinn and State-owned Irish Bank Resolution Corporation over liability for loans of €2.34 billion made by the former Anglo Irish Bank to Quinn companies.
At the Commercial Court Mr Justice Robert Haughton was told by Eoin O’Shea, for the Quinns, that the former Supreme Court judge and former president of the High Court has agreed to act as mediator.
The matter was adjourned for mention to a date in early October.
It is understood the mediation process will start later this month.
The judge welcomed the news, and congratulated the parties on obtaining the services of Mr Justice Finnegan. He wished the parties well in the mediation process.
The court had previously been informed that the parties had agreed to mediation. The case, should it proceed to hearing before the Commercial Court, could take several months to complete.
Action deferred
The action, initiated in May 2011 and due to open on June 3rd last, has been deferred to January 2016 pending the outcome of criminal proceedings against former Anglo chairman Seán FitzPatrick, due for hearing in October.
Two other hearing dates for the Quinns’ action were also previously deferred, also on the application of the DPP and on similar grounds of criminal proceedings against various former Anglo executives and officials.
In their case against IBRC and its special liquidator Kieran Wallace, the Quinns allege €2.34 billion in loans made by Anglo to various Quinn companies were for the unlawful purpose of propping up the bank’s share price. Following a Supreme Court decision last March, they cannot pursue aspects of their claim alleging the loans are unenforceable.
The defendants previously joined Seán Quinn snr and former senior Quinn Group executives Dara O’Reilly and Liam McCaffrey as third parties.
The third parties have denied the bank’s claims they acted as agents of the Quinn plaintiffs concerning disputed share pledges and guarantees.
The legal costs of the Quinn proceedings to date are estimated to run to several million euro.
