No upfront payment for firms

Businessman Declan Ganley’s ability to pay the costs of a legal action over the issuing of the State’s second mobile phone licence means two companies associated with him do not need to put up money in advance in case they lose the action, a High Court judge ruled.

Mr Justice Sean Ryan yesterday refused an application by businessman Denis O’Brien requiring the two companies to provide security for costs of the action in which it is claimed the awarding of the licence was unlawful and is void.

Mr Ganley, US-registered Comcast International Holdings, and UK-registered Ganley International, were members of the Cellstar consortium which came last of six bidders in the public competition for the licence which was eventually awarded to Esat Digifone whose chairman was Mr O’Brien.

Mr Ganley and the two companies are suing Esat as well as former communications minister Michael Lowry and the State.

Mr O’Brien has counter-claimed for malicious prosecution and says the conduct of Mr Ganley and the companies is actuated by malice towards him.

Mr O’Brien sought an order from the High Court that Comcast and Ganley International put up security for costs of their case because both companies were not based in this jurisdiction, had no assets and would, therefore, be unable to pay the legal bills if he (O’Brien) won the case.

Yesterday, Mr Justice Sean Ryan refused Mr O’Brien’s application. He said, while on the face of it Mr O’Brien had a strong case suggesting the Comcast/Ganley companies had no prospect of paying costs if they lose, the decisive principle here was that Mr Ganley himself, as co-plaintiff, is “apparently a mark for costs”.

He was saying “apparently” not to indicate any uncertainty or any decision on the matter but to indicate (Ganley being a mark) was sufficiently established for the purposes of the security for costs application.

If Mr Ganley was to cease to be a plaintiff, it would be possible for Mr O’Brien to renew his application, he said.