Quinn family court case to avoid loan liability to begin

A court case initiated by the family of businessman Seán Quinn against Irish Bank Resolution Corporation (IBRC) and special liquidator Kieran Wallace is due to begin in Dublin this week.

The action is being taken by Mrs Patricia Quinn and her five adult children to avoid liability for loans worth €2.34 billion. The family say they are innocent parties to the loan transactions involving Quinn group companies.

Last month a High Court judge ruled that the Quinn family could proceed with claims that some €2.34 billion in loans by Anglo Irish Bank to various Quinn companies were made for the unlawful purpose of propping up the bank's share price.

However, Mr Justice Robert Haughton last month said the Quinns cannot continue to pursue those aspects of their claim alleging the loans are unenforceable.

The family’s case, initiated in May 2011, is expected to last more than six months and has been brought against IBRC and Mr Wallace.

It centres on the family’s claim they are entitled to deny liability in relation to their guarantees and security for the loans because of statutory and regulatory breaches by IBRC’s predecessor, Anglo Irish Bank.

The defendants had previously joined Seán Quinn snr and two former senior executives of the Quinn group, Liam McCaffrey and Dara O’Reilly, as third parties.

Quinn agents

The bank claims the third parties at all times acted as agents of the Quinns concerning the execution of share pledges and guarantees. The Quinns deny those claims.

The Quinns dispute the validity of share pledges and guarantees provided as security for loans made by the former Anglo to Quinn companies.

Shane Murphy, counsel for IBRC, said his side intended to bring a motion during this week’s hearing against Sean Quinn snr seeking judgment against him in this case.