High Court rules Quinns are entitled to assert privilege over most of 313 documents

Five children of businessman Sean Quinn are entitled to maintain privilege over most of 313 documents which Irish Bank Resolution Corporation (IBRC) says it needs to defend the family's claim that share pledges and personal guarantees in relation to €2.34bn in debts are invalid.

Mr Justice Robert Haughton, in a pre-trial Commercial Court ruling, said the Quinns are entitled to assert privilege over all but 16 of 313 documents sought by IBRC.

The judge did so having examined the documents himself after a dispute arose between the Quinns and IBRC in relation to certain categories of documents which the bank sought to be disclosed in preparation for the trial which is due to start next month.

The material was held by Mason Hayes and Curran (MHC), the Quinns' former solicitors. Eversheds solicitors took over the case after MHC, due to potential conflict of interest, was unable to continue to act for them.

Sean Quinn's five children, Ciara, Collette, Brenda, Aoife, and Sean junior, in their case against IBRC and its special liquidators, dispute any liability for loans to Quinn companies of some €2.34bn advanced to them by the collapsed Anglo Irish Bank, IBRC’s predecessor in title.

Sean Quinn's daughter Aoife

The children say they were the beneficial owners of the Quinn Group insurance and manufacturing arms and of a complex structure of companies known as the International Property Group (IPG). The IPG was established so the five children would each have their own property and investment portfolios.

The Quinns say share pledges, personal guarantees and indemnities executed by them are invalid and unenforceable on grounds including undue influence and/or unconscionable bargain.

Sean Quinn's son Sean Quinn Jnr

IBRC denies the claims and has counterclaimed for recovery of the debts. It also claims the Quinns cannot claim invalidity based on a breach of Market Abuse Regulations or company law, in light of a Supreme Court decision.

The parties attempted to resolve the cases through mediation but the judge who is to hear the case, which is expected to last six months, was told the talks had failed.