A FORMER chief executive of Ryanair, Mr Eugene O'Neill, has instituted legal proceedings against Dr Tony Ryan and Ryanair seeking to set aside an £83,000 settlement made with the company in 1995.
Mr O'Neill contended he "was not of sound mind and was incapable of understanding the provisions, the nature and effect of the said settlement or of properly giving his assent thereto".
And as Ryanair prepares for flotation in Dublin and New York, Mr O'Neill has written to the Securities and Exchange Commission in New York repeated allegations made in the Irish courts in the late 1980s and early 1990s.
In a statement yesterday, Ryanair contended that Mr O'Neill had a history of proceedings against the company and other parties "and these have been long since resolved and settled.
"Ryanair is entirely confident that the proceedings are completely spurious and totally without merit and has been so advised by its solicitors. The proceedings will be dealt with in the appropriate manner. If deemed appropriate, relevant disclosures will be made in the Listing Particulars in due course.
Mr O'Neill was appointed chief executive of Ryanair in 1986, a year after it was set up by the three sons of Dr Ryan. But in September 1988 Ryanair employees were told that Mr O'Neill had left the company because of what was described by the company as "differences with the board on policy matters".
In the same month Mr O'Neill who had a 7 per cent stake in Ryanair, took High Court proceedings against nine defendants including Dr Ryan and his sons, making seven separate claims. The proceedings related to claims of oppression of a minority shareholder under section 205 of the Companies Act and claims for damages for unfair dismissal, alleged conspiracy and other matters.
The defendants included Dr Ryan, then chairman and chief executive of GPA, and Ryanair directors Cathal and Declan Ryan.
Mr O'Neill claimed damages for wrongful dismissal, misrepresentation, breach of contract, inducing breach of contract and breach of articles 85 and 86 of the EEC treaty. He sought declarations that anti competitive practices by Aer Lingus amounted to abuse of its dominant position and that ad vices, guidance or directions to Aer Lingus from Dr Ryan, GPA and/or Transport Analysis amounted to conspiracy to dam age the value of Ryanair shares.
In 1991 Mr O'Neill took new proceedings against Tony, Cathal and Declan Ryan and a solicitor, Mr Kevin O'Brien, as trustee for Shane Ryan, seeking specific performance of what was claimed to be, an agreement to buy his shares in Ryanair for £734,788, or 101p per share, by a specific date.
Mr O'Neill succeeded in the action to have his shares purchased for almost £735,000 in settlement of his oppression claim.
