Quinn family to sue Drumm over loans of €2.34bn

The family of bankrupt businessman Seán Quinn plans to sue the former Anglo Irish Bank CEO David Drumm and 10 other former Anglo directors.

Yesterday, the former billionaire’s family secured leave from the High Court to serve intended legal proceedings on David Drumm in the US.

The Quinns intend to sue Mr Drumm and 10 other former Anglo directors, along with the Central Bank and Department of Finance in their capacity as regulators, over loans of €2.34bn allegedly unlawfully issued by Anglo to Quinn companies during 2007 and 2008.

It is alleged these were intended to fund margin calls on contract for difference positions held by the Quinn family in Anglo shares.

Patricia Quinn and her five children claim Mr Drumm was, between 2004 and 2008, directly involved in, and played “a leading role” as CEO, in the alleged actions of Anglo.

The 10 former directors are: Declan Quilligan, of Wetherby Place, London; Patrick Whelan, of Coast Rd, Malahide, Co Dublin; Lar Bradshaw, of Church Rd, Killiney, Co Dublin; Fintan Drury, of Old Russian Village, Kilquade, Co Wicklow; Noel Harwerth, of Grosvenor Square, London; Anne Heraty, of Highfield Rd, Rathgar, Dublin; Michael Jacob, of Newtownpark Avenue, Blackrock, Co Dublin; Willie McAteer, of Auburn Villas, Rathgar, Dublin; Gerard William McGann, of Stonehouse, Donnybrook, Dublin; and Edmond Francis Sullivan, of Linden Fields, Grove Avenue, Blackrock, Co Dublin.

The Quinns allege the former directors either collectively or individually authorised the advancing of loans to Quinn companies and this was illegal and/or wrongful and caused damage to the Quinns.

They are claiming damages against all defendants for alleged conspiracy, breach of duty including statutory duty and fiduciary duty, negligence, misfeasance in public office.

In reply to Mr Justice Kevin Cross yesterday about the “status” of Mr Drumm, Martin Hayden SC, for the Quinns, said Mr Drumm was not a bankrupt and his side was proceeding against Mr Drumm. Counsel also indicated his side would later apply to have proceedings fast-tracked in the Commercial Court.

The Quinns intend these latest proceedings against the regulators and former directors will be consolidated with their existing proceedings against Irish Bank Resolution Corporation in which they contend they are not liable for the €2.34bn loans on grounds those were unlawfully made to prop up Anglo’s share price.

The existing action against IBRC, known as the main action, has been “parked” pending the conclusion of criminal proceedings against Mr Whelan, Mr McAteer and former Anglo chairman Seán FitzPatrick.

Yesterday, Mr Justice Cross granted Mr Hayden leave to issue plenary proceedngs against Mr Drumm and to serve proceedings on him at an address at in the US.

In the intended proceedings, the Quinns allege the defendants, their servants and/or agents conspired to commit illegal and/or unlawful acts through breaches of Section 60 of the Companies Act and the regulations issued under the EC Market Abuse Directive.