THE former Anglo Irish Bank failed in its bid to get court orders requiring the family of bankrupt Sean Quinn to provide security for costs in relation to a legal challenge.
The bank sought security for the cost of getting legal discovery of documents for the family’s action aimed at avoiding liability for loans of some €2.34 billion.
Irish Bank Resolution Corporation, had argued the costs of making the “vast” discovery sought by the family could be as high as €1m while the costs of discovery to which the bank had agreed would be about €600,000.
Mr Justice Michael Moriarty ruled last Friday, July 13 IBRC was not entitled to an order requiring Mrs Patricia Quinn and her five children provide security for costs of discovery of documents for their action alleging they have no liability for the €2.34bn loans because Anglo had engaged in illegal conduct to prop up its share price.
In opposing the bank’s application for security for costs during the hearing last April, Rossa Fanning, for the family, argued the bank was trying to “bleed” the family dry to prevent them exposing the “biggest corporate scandal in the history of the State”.
Also last Friday, Mr Justice Michael Moriarty made various rulings as to what documents must be discovered by the sides for the family’s action, a date for which has yet to be set.
The IBRC has told the High Court that it will seek to appoint a receiver to the worldwide assets of the Quinn children and their spouses when the family is back in court on July 20.