IBRC trying to ‘grind down’ Quinn family

IBRC is seeking to “grind down” the family of bankrupt businessman Sean Quinn in the long-running litigation between the sides so as to make the family bankrupt and unable to pursue their case against the bank, it has been claimed before the High Court.

Martin Hayden SC, for the Quinns, argued IBRC’s opposition yesterday to a stay being granted on a costs order made against the family, following the court’s refusal of their bid to “ring-fence” Quinn group assets and stop them being moved to Nama, marked “a change of attitude” by the special liquidators in relation to costs issues.

Until now, both sides had agreed that stays should apply on multiple costs orders arising from many pre-trial applications pending the outcome of the family’s case, in which they argue Anglo Irish Bank advanced unlawful loans of €2.34bn to companies in the Quinn group. That action has been parked pending the outcome of criminal proceedings taken against a number of former Anglo executives.

Yesterday, Brian Murray SC, for IBRC, said that his side believed, in regard to the costs of this particular application, the court should not grant the usual stay on the costs on grounds the application had been “unstateable” from the outset, could not have succeeded and should never have been brought.

In her ruling Ms Justice Mary Finlay Geoghegan said she would place a stay on her order awarding costs against the Quinns of this particular application pending the outcome of the case, as the Quinns could not pursue their full action due to the criminal proceedings against former executives of Anglo and both sides had to date agreed that any costs orders should be stayed pending the outcome of the full action.