Anglo fails to make Quinns secure cost
The bank, now Irish Bank Resolution Corporation, had argued the costs of making the “vast” discovery sought by the family could be as high as €1m while the costs of discovery to which the bank had agreed would be about €600,000.
Mr Justice Michael Moriarty ruled IBRC was not entitled to an order requiring Patricia Quinn and her five children to provide security for costs of discovery of documents for their action alleging they have no liability for the €2.34bn loans because Anglo had engaged in illegal conduct to prop up its share price.
The judge said he was providing an outline of his findings only and a full written judgment would be delivered next week.
Also yesterday, the judge made various rulings as to what documents must be discovered by the sides for the family’s action.
The sides had reached agreement on most of the categories of documents to be discovered but there were issues on which they disagreed.
Among the rulings made was one requiring the bank to discover all relevant documents circulated to the Anglo board concerning its financial difficulties from Sept 2007 to Dec 31, 2008, plus minutes of board meetings over that period. The judge also directed the bank to discover all versions of the O’Connor report into matters at Anglo.
In opposing the bank’s application for security for costs during the hearing last April, Rossa Fanning, for the family, argued that the bank was trying to “bleed” the family dry to prevent them exposing the “biggest corporate scandal in the history of the State”.
IBRC’s approach to the litigation by the Quinns was “bizarre” in circumstances where, in other litigation, it had “vituperatively derided” the conduct of certain former Anglo executives, said Mr Fanning.
Brian Murray SC, for IBRC, argued the Quinns, while opposing security for costs, had “tellingly” not said they could not pay the money and were able to lodge some €500,000 in the courts in Cyprus last year when seeking injunctions against the bank.
Based on the bank’s experiences with the family in litigation over the past year, the bank would have to chase the Quinn assets “round the globe” and the discovery costs should be “ring-fenced” and available to the bank, counsel urged.
