THE HIGH Court has begun a hearing to decide key preliminary issues in actions by a number of shareholders in Irish Life and Permanent and others to the Government’s recapitalisation of the bank.
Piotr Skoczylas and his company Scotchstone Capital are among a number of litigants challenging the recapitalisation on grounds including it unlawfully imposes an unacceptable €2.7 billion burden on Irish and other EU taxpayers.
IL&P shareholders Gerard Dowling and Pádraig McManus previously told the court they were supporting Mr Skoczylas while in separate proceedings, an investment fund – Horizon Growth – is also challenging the recapitalisation.
In a court packed with shareholders yesterday, Mr Justice Kevin Feeney began a hearing of several preliminary issues in the proceedings. The full hearing is expected to last several days.
The first issue being addressed is a motion by the Minister for Finance Michael Noonan in which he argues that Mr Skoczylas, in circumstances where he is a lay litigant representing himself, is not entitled to represent Scotchstone in the action.
Mr Justice Feeney said that issue went to the essence of matters and should be determined first, because if Mr Skoczylas was not entitled to represent the company, it should be aware of that.
Mr Skoczylas, as managing director of Scotchstone, argues he is entitled to do so on several grounds.
In circumstances including where the Supreme Court, in another case, has directed a hearing to determine whether the existing law on this issue is good law, it would be unjust and inequitable to prevent him representing Scotchstone in the case, he submits.
Mr Skoczylas also argues that neither he nor his company can afford lawyers and they had unsuccessfully sought to secure lawyers on a no foal, no fee, basis.
The second issue is an application by the lay shareholders and Scotchstone to dismiss the Minister’s motion to strike out the applications by Mr Skocyzlas and Scotchstone on grounds they were brought outside the time periods allowed under the relevant law.
The Minister is also seeking to strike out Mr Skocyzlas’s claims on grounds he was not a member of IL&P when the recapitalisation order was made and therefore does not have the required legal standing to bring his proceedings.
Mr Skoczylas disputes those claims and, in another preliminary application, has asked the court to strike out the Minister’s motion on grounds including it is irrational, flies in the face of common sense and was not issued in accordance with High Court directions.
In another preliminary application, Mr Skoczylas wants an order to redact certain material from one of his affidavits concerning when he acquired shares in IL&P, the price paid for those shares and the manner in which he acquired them.
The hearing continues.
Fitch warning: Sell-off ‘challenging’
Credit ratings agency Fitch has said it will be “challenging” for the Government to find a suitable buyer for State-controlled life and pensions company, Irish Life, in the current economic climate.
Irish Life’s ratings were affirmed by Fitch at BBB+, three notches above junk status, and face a possible downgrade.
The ratings reflect the close links between Irish Life and the economy, and its exposure to Irish Government debt, Fitch said.
Irish Life was put up for sale by the Government in August but the sale was postponed in November after a preferred bidder, Great West Life-co, owner of Canada Life, pulled out of the purchase.
Fitch said Irish Life could be downgraded if the economic environment threatened its profitability. "Such threats could include the impact of the Irish Government's austerity package, high unemployment, reduced consumer confidence and lower than expected GDP," Fitch said. SIMON CARSWELL
