The Supreme Court has continued until next Thursday an order restraining RTE from using confidential information relating to National Irish Bank and its customers.
The High Court earlier yesterday lifted the injunction after refusing an application by NIB for an interlocutory order restraining RTE from using the information pending the determination of legal proceedings.
Refusing NIB's application, Mr Justice Shanley said it seemed to him disclosure of confidential information would always be justified in the public interest where it was a disclosure as to the commission or intended commission of serious crime.
NIB appealed the High Court ruling to the Supreme Court. The court adjourned the hearing of the appeal until Thursday and said the injunction would remain in effect until then.
Last week NIB applied to Mr Justice Shanley in the High Court for an interlocutory order continuing an interim injunction against RTE until after the hearing of an action brought by the bank against the broadcasting station.
In a reserved judgment yesterday, the judge said RTE unequivocally alleged that NIB was complicit in a scheme designed to enable its customers to evade tax and that the "greater part" of NIB's customers who invested in the scheme did so to evade tax.
"The charges could not be more explicit or serious," he said. "If they are correct they will have serious consequences for NIB and its customers involved in the scheme for the purpose of tax evasion.
"If they are incorrect that will have serious consequences for RTE."
It was clear RTE proposed to stand over its allegations and he was satisfied that in such circumstances he should allow publication of the confidential information preferring, as he did, the public interest in the disclosure of such information.
The bank had asked the High Court to restrain RTE using any document or information identifying NIB customers, accounts or transactions. It also applied for an order to direct RTE to hand over all such documents.
The dispute arose out of a letter received by NIB from RTE on January 20th last stating that the station was working on a story on NIB's alleged involvement with Clerical Medical Insurance, an Isle of Man-based company.
The letter claimed RTE had learned that in 1996 there was more than $150 million in CMI personal portfolio accounts being held at NIB and that the initiative for the arrangement with CMI came from NIB's financial services division.
Mr Justice Shanley said the only matter at issue was whether the public interest in the confidential information remaining confidential outweighed the public interest which RTE said existed in making known the alleged tax evasion. It seemed to him that disclosure of confidential information would always be justified in the public interest where it was a disclosure as to the commission or the intended commission of serious crime.
The commission of such a crime was an attack on the State and its citizens and such disclosure would always be in the public interest.
The judge said the first public interest was the preservation of confidences. The countervailing public interest was that of the public being kept informed on matters of public concern.
He held that NIB had clearly established there was a serious issue to be tried. He also held that damages were not an adequate remedy because publication of the information might well have an adverse effect on the bank's relations with its customers.
But, he said, he was quite satisfied the public interest defence had not been raised frivolously and that RTE had made a strong case which might or might not succeed at the trial of the action.
He said that while RTE had made out a "strong case" it was only a case made out on affidavit on an interlocutory application. It might well be that at the trial of the action, witnesses for NIB would satisfy the trial judge there was no basis for the public interest exception which allowed disclosure.
If so, RTE would bear the consequences of such a decision.