Quinns in bid to have receiver discharged

Members of the family of bankrupt businessman Seán Quinn are to seek to have the receiver appointed over their assets and his lawyers discharged.

The Quinns say they have concerns over a possible conflict of interest and the impartiality of the receiver, insolvency practitioner Declan Taite.

The Quinns were before the Commercial Court yesterday, arising out of an application by the receiver compelling them to give him information concerning their assets and tax affairs.

They were also to explain to the court how they intended to proceed without legal representation in ongoing actions involving former IBRC.

Those proceedings involve Sean Quinn Sr’s four daughters, Collette, Aoife, Brenda and Ciara, and two sons-in-law, Stephen Kelly and Niall McPartland, and daughter-in-law, Karen Woods.

His son, Seán Jr, who is serving a three-month term for contempt, did not attend court, nor did his nephew, Peter Darragh Quinn, who is believed to be outside of the jurisdiction.

Mr McPartland, who told the court that he was a qualified solicitor, said while they did not want to go into details, the family had concerns about the receiver, Mr Taite of RSM Farrell Grant Sparks, and his lawyers Arthur Cox solicitors.

He said the family believed Mr Taite was being “pointed in a particular direction by the bank” in seeking information about one of the Quinn companies, Bazelly Ltd.

The family believed that this was not allowed as any receiver must act independently. There could be “no room for error” he added, given that the actions in question were the largest civil litigation case to come before the Irish courts.

Andrew Fitzpatrick BL, for the receiver, said that allegations of a purported conflict of interest were an attempt to delay an action aimed at having the Quinns hand over records relating to their assets and tax affairs.

Counsel said the Quinns had not been co-operating with the receiver, and rejected any application for an adjournment.

Last July, IBRC applied to the court to have Mr Taite appointed as receiver over the worldwide assets of various Quinn family members and over various foreign companies. The Quinns consented to those orders.

IBRC also secured various orders freezing the accounts of family members.

In his ruling yesterday, Mr Justice Peter Kelly noted that the Quinns had not furnished any detailed information to the court about its concerns over any possible conflict of interest, but if it had concerns it must bring a motion seeking his removal.

Mr McPartland could not “huff and puff and not blow the house down”, he said.

After being informed that the Quinns would seek to have Mr Taite removed the judge directed they make a sworn statement about their concerns regarding the receiver and his lawyers within one week. The matter was adjourned to Oct 9.

The judge also granted the family, who are curren-tly not legally represented, a two-week adjournment in their Commercial Court proceedings involving former Anglo Irish Bank, now IBRC. IBRC is pursuing the Quinns for €2.8bn. The Quinns deny liability for €2.3bn in loans they claim were given illegally by the bank to prop up its shares.

The Quinns, who earlier this month allowed their lawyers come off record due to financial issues, say they are hopeful of being represented by English law firm Edwin Coe. The firm is not able to act in Ireland and if it does agree to represent the Quinns it will have to engage Irish agents.

The judge, who noted that the English firm spoke in terms of hoping to be able to represent the Quinns rather than in more definite terms, refused the family’s request to adjourn commercial proceedings involving IBRC over their legal representation beyond Oct 9. He was not there to preside over some legalistic “Lanigan’s ball” where one set of solicitors “stepped in” while another “stepped out again”.