Eagle Star has indicated it will be seeking damages from DCC in light of the Supreme Court ruling that the company's executive chairman, Jim Flavin, held insider information when selling shares in fruit group Fyffes.

The indication of a likely action against DCC by Eagle Star came ahead of a special meeting of the Irish Association of Investment Managers (IAIM) which will examine the court's ruling.

DCC is a sales, marketing and business support services group whose interests range from healthcare to energy.

While the IAIM meeting is expected today, the body is considered unlikely to make a public statement on the matter.

Eagle Star is one of four purchasers of Fyffes shares from DCC to take legal proceedings against DCC around the time Fyffes initiated its own case against Mr Flavin's company. The others were: Hibernian in Dublin, Putnam Asset Management in Boston, and Founders Asset Management in Denver. Their actions were put into abeyance pending a ruling on liability in the case, which was provided by the Supreme Court last Friday when it found against Mr Flavin.

Asked whether Eagle Star will now move ahead with an action for damages, an Eagle Star spokesman said last evening that its position "has not changed" since it issued proceedings against DCC in early 2002.

He pointed to a statement Eagle Star made at that time, in which the firm said it was entitled to claim compensation from DCC and others "if the facts alleged in the statement of claim issued on behalf of Fyffes plc are true". Eagle Star provided no further information.

Hibernian Investment Managers declined to comment. However, it is understood that Hibernian representative Philip Kearney - who is chairman of IAIM's market instruments committee - will not chair its discussion of the case because he is conflicted due to Hibernian's purchase of Fyffes shares from DCC.

A spokeswoman for Putnam said it was awaiting further direction from the Supreme Court. A Founders spokeswoman said the institution "has not yet reviewed this ruling and therefore cannot comment on future proceedings".

Mr Flavin has received unanimous backing from DCC's board. If action is taken against it, DCC is believed likely to rely on legislation that holds that a firm in an insider dealing case should not pay damages on the double to multiple litigants.