Quinns claim contempt proceedings are ‘an abuse of process’

The bringing of contempt proceedings against Sean Quinn and members of his family is an “abuse of process” and an attempt by former Anglo Irish Bank to destroy the Quinns’ credibility in advance of their own action against it, it has been claimed.

In the High Court, Mr Quinn, his son Sean Jr and nephew Peter arragh Quinn deny they are in contempt of court orders made in June and July 2011 restraining dissipation of assets pending the outcome of proceedings by the bank related to the Quinns’ international property group, which had assets across Europe, India, Russia, and Ukraine.

In proceedings against Quinn Investments Sweden and others, including Mr Quinn and several members of his family, the bank claims the Quinns were trying to put properties valued at up to €500m beyond its reach. The bank claims it has legitimate charges over those properties, owned via a web of companies, but the family dispute that.

In separate proceedings, Patricia Quinn and her five children are seeking to avoid liability for loans of up to €2.8bn advanced by the bank on grounds including those were made for the unlawful purpose of propping up the bank’s share price.

Yesterday was the second day of the hearing before Ms Justice Elizabeth Dunne of the application by IBRC for orders for attachment and committal of the three respondents for alleged contempt of the June order.

Continuing his opening of the case, Paul Gallagher, counsel for IBRC, read extensively from documents, correspondence and affidavits from both sides addressing claims by Anglo the three were involved in a strategy to strip the Quinn companies of assets to place them beyond the reach of IBRC.

IBRC contends Sean Quinn Sr and Peter Darragh Quinn were the “prime movers” in that strategy which, it alleges, involved contrived arbitration awards, self-bankruptcies, disposal of valuable assets at an undervalue and various over-payments to various parties, including an alleged $1.1m payment to lawyers in Ukraine.

Mr Gallagher said IBRC was concerned substantial payments appeared to have been made to parties without obvious justification and about “extraordinary circumstances” behind certain debts.

The opening of the case may conclude today after which evidence may begin. Peter Quinn is listed as the first witness.

The action is expected to last 10 days or more.