The long-running legal dispute between the Irish Permanent and its former chief executive, Dr Edmund Farrell, and a number of other defendants, will finally begin in the High Court today. There are six separate cases involved, which will be heard by Mr Justice Geoghan. Legal experts have suggested the hearing could drag on well into next year. But despite the marathon task ahead, there were no signs yesterday of attempts by either side to resolve the matter before it reaches the court.
The judge will decide today upon the order in which the cases will be heard. Legal teams from both sides are expected to press for those which involve the same parties to be heard first, in an effort to contain costs.
There are four main cases, which include an action by Dr Farrell against the Irish Permanent claiming he was unfairly dismissed from his position. The Irish Permanent is claiming that Dr Farrell acted in breach of his duties as a director of the former building society between April 1986 and June 1992. In consequence of payments alleged to have been made to Dr Farrell and his wife, the company is seeking a declaration that the Farrell's home, Grasmere, at Westminister Road, Foxrock, Co Dublin, and a neighbouring property, Waverly Lodge, are held in trust for the company.
The Irish Permanent is also challenging the inclusion of a restrictive covenant in his employment contract, worth £300,000, which was paid to him in 1991. The company has also brought an action against Dr Farrell, two companies and consultant, Mr Kelvin Smythe, related to a property in Co Galway and an alleged payment of £100,000 made by the society to one of the companies. The property, Portcairn Lodge, at Uachtarard, Co Galway, was purchased through a company called Utrecht, set up by Mr Smythe and used by Dr Farrell. It has subsequently been sold and the Irish Permanent is seeking the return of £100,000 from Dr Farrell.
Two further cases have been taken in turn by Mr Smythe against the Irish Permanent seeking the payment of consultancy fees he claims are owed to two companies he controlled, Trivo and Quasar. He has alleged that both companies are owed in the region of £30,000 each by the Irish Permanent.
Today's proceedings are expected to be largely dominated by legal presentations on documentation sought by the Irish Permanent.
Dr Farrell will be the key witness in the actions before the High Court. Other witness expected to answer questions in court include Mr Smythe, while some former directors of the Irish may be called to appear in court.
Dr Farrell has claimed that the board which reigned during his tenure as chief executive had full knowledge of his arrangements with the society.
