AIB injunction would ‘hit’ rival firm

A BUSINESS would be dealt a major blow at a “critical” early stage if AIB was granted a “sweeping injunction” stopping several former senior executives from canvassing any clients.

AIB has claimed six executives conspired with a rival business to take over the clients, business and staff of AIB’s International Financial Services (IFS) business when it moved last June to sell it to another group, Capita.

The bank has also brought High Court proceedings against financial services companies — Centralis SA based in Luxembourg, Centralis Switzerland and Centralis Hungary — which AIB claims were involved in the plan.

Paul Gallagher SC, for Centralis, yesterday argued the injunction AIB is seeking would have profound effects on business operations here, in Luxembourg, Switzerland and Hungary.

It would “hit this business at the critical formative stage” and would “prevent them operating the business as it is entitled to do”, Mr Gallagher argued. “They are seeking to freeze competition. That is something they are not entitled to do.”

Counsel also said it has been alleged that his clients have received confidential information or trade secrets belonging to AIB IFS. This was denied by his clients.

The six are: Pat Diamond, Elton Park, Sandycove in Dublin; Aidan Foley, formerly of Grawn, Kilmacthomas, Wexford; Gerry McEvoy, formerly of Shandon Park, Phibsboro, Dublin; Derek O’Reilly of Fernleigh Drive, Castleknock, Dublin; Andrew O’Shea, formerly of Ashbrook House, Julianstown, Co Meath; and Joe Walsh, formerly of Grosvenor Terrace, Monkstown, Dublin.

The defendants have denied any wrongdoing. They also claim AIB’s actions were preventing the corporate defendants from competing against IFS.

AIB has claimed Capita reduced its offer for IFS from €55m to €33m after 25 directors and employees left IFS.

Mr Justice Frank Clarke said that stating that damage had already occurred was not a reason in itself for granting an injunction.

Separately, an application by Andrew O’Shea to have AIB’s interim injunction dismissed was withdrawn. He will not approach AIB IFA clients for 12 months, will give computer records, laptops and memory sticks to AIB for inspection, and resign from Centralis.

The hearing continues.