State to fight any mobile licence damages claim

The Government will fight any efforts to claim damages by two unsuccessful bidders for the lucrative mobile phone licence awarded to Denis O’Brien’s Esat.

“The State will fully defend any claim against the exchequer and will contest any claim of liability to pay damages from public funds to these plaintiffs,” said Communications Minister Pat Rabbitte last night.

He was reacting to a Supreme Court ruling which has cleared the way for the unsuccessful bidders to proceed with a legal challenge to the manner in which the licence was awarded to Esat in 1995.

Comcast International Holdings Incorporated and Persona Digital Telephony Ltd had initiated separate actions in 2001 challenging the licence award and claiming damages.

The two companies were part of separate consortiums that had unsuccessfully bid for the licence.

In 2007, the State succeeded in the High Court in getting the actions struck out. The bidders’ appeal against that decision was upheld by the Supreme Court yesterday, which means their actions can now proceed.