Gayle Killilea Dunne's bid to halt property-transfer proceedings opens in High Court

An application by Gayle Killilea Dunne aimed at halting proceedings against her over the alleged transfer of South African properties between the Dunnes has opened before the High Court.

By Ann O'Loughlin

An application by Gayle Killilea Dunne, wife of bankrupt developer Sean Dunne, aimed at halting proceedings against her over the alleged transfer of South African properties between the Dunnes has opened before the High Court.

The case relates to Mr Dunne's 2013 bankruptcy adjudications in both Ireland and the United States,

The official in charge of Mr Dunne's Irish bankruptcy, official assignee (OA) Chris Lehane, has brought proceedings over the alleged fraudulent transfer of assets in South Africa and Ireland between Mr and Mrs Dunne.

Mr Lehane's action relates to agreements between Mr and Mrs Dunne in 2005 and 2008 to transfer interests to her a number of assets, including a hotel called "Lagoon Beach" in Cape Town, South Africa, and shares in an entity call "Mavior".

In her pre-trial motion, she claims Mr Lehane's proceedings are unfair because they cover the same grounds as proceedings that have been brought in the US.

Represented by John O'Donnell SC and Alan Doherty SC, she claims the action duplicates the US proceedings and should be discontinued.

Opening the case Mr O'Donnell said it is his client's case there is "a substantial overlap" between proceedings in Ireland and the US.

It is their case that the US is the only jurisdiction where Mr Dunne's estate can be administered, and the OA has nothing to administer, counsel said.

Mr Lehane, represented by Mark Sanfey SC and Paul Gardiner SC, oppose the application and says that certain issues concerning Mr Dunne's estate should be heard in Ireland, while others should be heard by the US courts.

As part of her application to have the case struck out, Alan Doherty SC cross-examined US attorney Mr Timothy Miltenberger, who acts for Richard Coan the "Chapter 7" trustee dealing with Mr Dunne's US bankruptcy in the US, on sworn statements he has submitted on US bankruptcy law.

Mr Miltenberger said given the matters involved Irish citizens, and a creditor body that is "almost exclusively Irish," his client was happy to have proceedings concerning assets in Mr Dunne's estate outside the US adjudicated on by the Irish courts.

Other assets in the US could be adjudicated on in America, he added.

The hearing, before Mr Justice Brian McGovern, continues.