Quinn Insurance seeks to fast-track action

The administrators of Quinn Insurance are taking steps aimed at securing an urgent hearing of their action against the group’s former auditors, Pricewaterhouse Cooper, the former auditors of the failed company.

The action will allege professional negligence against PWC in relation to two matters — guarantees given by Quinn Insurance over loans to bankrupt businessman Seán Quinn and his family which allegedly resulted in its collapse and issues concerning the adequacy of its reserves.

The president of the High Court, Mr Justice Nicholas Kearns, was told yesterday by Bernard Dunleavy BL, for the joint administrators, they intended to proceed with their action.

A summons issued against PWC last February had been renewed, would be served soon and his side would then apply to the Commercial Court to have the action fast- tracked.

The Finance Minister had been informed of the administrators’ intentions and had raised no objection to the proposed course of action, counsel added.

The collapse of Quinn Insurance is expected to result in €1.6bn public money being drawn down from the State-backed Insurance Compensation Fund, which has lead to the Government imposing a 2% levy on various insurance policies.

Mr Justice Kearns, having being updated on the proposed action, said he was happy the administrators should proceed as proposed.

Mr Dunleavy, for the administrators, Michael McAteer and Paul McCann, said that an opinion concerning the intended action had been sought from two senior counsel, Paul Gallagher and Michael Collins.

That and other confidential material was provided to the judge.