Retired Judge to act as mediator between Quinn family and IBRC in long running liability dispute

Retired Judge Mr Justice Joseph Finnegan has agreed to act as mediator in the long running legal dispute between the family of businessman Sean Quinn and State-owned Irish Bank Resolution Corporation over liability for loans of €2.34 billion made by the former Anglo Irish Bank to Quinn companies.

At the Commercial Court Mr Justice Robert Haughton was told today by Eoin O’Shea Bl, for the Quinns, that the former Supreme Court and President of the High Court has agreed to act as mediator.

The matter was adjourned for mention to a date in early October. It is understood the mediation process will commence later this month.

The judge welcomed the news, and congratulated the parties on obtaining the services of Mr Justice Finnegan. He wished the parties well in the mediation process and adjourned the matter for mention to a date in early October.

The court had previously been informed that the parties had agreed to mediation.  The case, should it proceed to hearing before the Commercial Court, could take several months to complete.

The action, initiated in May 2011 and due to open on June 3rd last, has been deferred to January 2016 pending the outcome of criminal proceedings against former Anglo Chairman, Sean Fitzpatrick, due for hearing in October.

Two other hearing dates for the Quinns’ action were also previously deferred, also on the application of the DPP and on similar grounds of criminal proceedings against various former Anglo executives and officials.

In their case against IBRC and its special liquidator Kieran Wallace, the Quinns allege some €2.34bn loans made by Anglo to various Quinn companies were for the unlawful purpose of propping up the bank’s share price. Following a Supreme Court decision last March, they cannot pursue aspects of their claim alleging the loans are unenforceable.

The defendants previously joined Sean Quinn Senior and two former senior Quinn Group executives, Dara O’Reilly and Liam McCaffrey, as third parties.

The third parties have denied the bank’s claims they acted as agents of the Quinn plaintiffs concerning disputed share pledges and guarantees.

The legal costs of the Quinn proceedings to date are estimated to run to several million Euro.