John Morrissey’s €36m case against the State dismissed

An action against the State related to €36m in loans given by the former Anglo Irish Bank to an entrepreneur, including for investment in the acquisition and restoration of period properties, has been dismissed.

The High Court found John Morrissey’s case against the minister for finance, Ireland and the attorney general, alleging his constitutional rights were breached by the sale of his loans to an investment company, was “no longer maintainable”.

He had claimed the 2013 Irish Bank Resolution Corporation (IBRC) Act, allowing his loans from Anglo to be sold on without his consent, breached his constitutional and European convention rights.

The court previously struck out his case against IBRC, which was Anglo’s successor, and against the IBRC special liquidators as well as against LSREF III Stone Investments, which acquired Mr Morrissey’s loans. Ms Justice Caroline Costello had permitted his case against the State to remain pending determination of separate proceedings by LSREF seeking judgment against him.

Last October, the judge gave judgment to LSREF for around €30m against Mr Morrissey, of Palmerston Road, Ranelagh, Dublin, .

The sum included credit for €143,000 in relation to interest overcharging by Anglo and IBRC which the court had previously found had occurred. It also included sums for other credits to Mr Morrissey’s account by receivers which the bank had appointed over his properties.

After that judgment, the State defendants applied to the court to dismiss the outstanding case against them. They argued Mr Morrissey had no standing to maintain proceedings in claiming the 2013 act was incompatible with his constitutional and convention rights.

As judgment had already been entered against him, even if he was to succeed in the case against the State, it would not affect the validity of assignment of the loans, it was argued. On the other hand, it could potentially have grave consequences for parties not before the court, it was claimed.

Mr Morrissey argued the judgment was being appealed. He also said he had suffered detriment on a number of grounds, including that he suffered anxiety and psychological damage as a result of the effect of the 2013 act. The breach of his constitutional rights warranted a remedy, he said.

Ms Justice Costello ruled Mr Morrissey no longer had standing to continue his case against the State defendants as as well as it being no longer maintainable.