The wife of bankrupt developer Seán Dunne has applied for High Court orders permitting her to cross-examine a lawyer representing the official dealing with Mr Dunne’s US bankruptcy.
Gayle Dunne has brought the application in pursuit of her bid to halt proceedings against her in the Irish courts over alleged invalid transfers to her of various assets of her husband, including a hotel in South Africa valued at more than €18 million.
Chris Lehane, the official administering Mr Dunne's Irish bankruptcy, has brought those proceedings against Ms Dunne, with an address at Greenwich, Connecticut.
She wants the proceedings discontinued on grounds including arguments that the disputed transfers are already subject of the US bankruptcy proceedings.
In March 2013, Mr Dunne filed for bankruptcy in the US state of Connecticut, where he was based. In July 2013, he was adjudicated bankrupt in Ireland and his appeal against the Irish adjudication was later dismissed by the Supreme Court.
At the Commercial Court on Tuesday, Alan Doherty SC, for Ms Dunne, argued the Irish proceedings against her are oppressive. Counsel argued the dispute over the alleged transfers should be determined by the US courts where the proceedings were more advanced with more parties involved who will be affected by the outcome.
Cross-examine
As part of Ms Dunne’s application to have the Irish proceedings stopped, she wants permission to cross-examine Milton Berger, lawyers to
Richard Coan
, the trustee dealing with Mr Dunne’s US bankruptcy. Mr Berger has provided, for use in Mr Lehane’s proceedings, sworn statements on issues including points of US law.
Mr Lehane, represented by Mark Sanfey SC and Edward Farrelly, is opposing the application, which has been adjourned to next month before Ms Justice Caroline Costello when arguments for Mr Lehane will be made.
Mr Lehane’s proceedings against Ms Dunne relate to two alleged agreements between Mr Dunne and his wife in 2005 and 2008 relating to assets including the Lagoon Beach Hotel, Cape Town, South Africa, and interests in assets including properties in Dublin and Co Wicklow as well as Rivertree (numbers 1 and 3), Shrewsbury Road, Dublin.
Mr Lehane claims the alleged agreement has no legal status.
In her defence, Ms Dunne says she is legally married to, and is the employer of, Mr Dunne. She also claims she has been a US resident since 2010 and divides her home between the US and Britain where she has business interests.
Wealth transfer
Prior to getting married, the couple had agreed that if she married Mr Dunne and started a family with him, he would immediately transfer a portion of his wealth to her, she claims.
It is also alleged agreements were reached between herself and Mr Dunne in March 2005, and in 2008, and a formal share transfer took place in October 2008. The transfers were entered into as compensation for Ms Dunne in relation to her career as a journalist and prospective career as a lawyer, it is claimed.
It is denied Mr Dunne purported to transfer assets or profits to her in the manner alleged by Mr Lehane.
