Mammoth Fyffes case enters final countdown

THE mammoth civil insider dealing lawsuit taken by Fyffes against former shareholder DCC enters its final phase today.

The High Court will begin hearing legal submissions from both sides, which is expected to last two weeks. It is believed that the submissions run to hundreds of pages.

Oral evidence finished in June after 78 days. The case began last December and a ruling by Ms Justice Mary Laffoy is not expected until October at the earliest.

Fyffes allege that when DCC sold its 10% stake in the company over three days in February 2000 it breached insider dealing rules.

It claims that DCC chief executive Jim Flavin who sat on the Fyffes board at the time was in possession of price-sensitive information and had been involved in the dealings, in breach of the insider dealing provisions of the 1990 Companies Act.

Fyffes is seeking €85 million in compensation, equivalent to the profits made by DCC on the share sale. DCC denies the claims, saying the share deals were conducted through its Dutch-registered subsidiary Lotus Green, which had beneficial ownership of the shares at the time. It also denies that Mr Flavin was in possession of price-sensitive information.

According to some estimates the case, which was due to last only six weeks, could cost each side €8m in legal fees.

Both sides have engaged three senior counsel and some of the top legal firms in Dublin.

The legal bills could go even higher if Judge Laffoy's ruling is appealed to the Supreme Court.

Fyffes and DCC have also employed full-time public relations executives to attend the court proceedings.

Two other actions against DCC from institutional investors in Fyffes are in abeyance pending the outcome of the case.

DCC, which holds its annual general meeting in Dublin this morning, has not made a provision in its accounts for any potential losses arising out of the Fyffes action.