The family of Sean Quinn are seeking permission from the High Court to sue former Chairman of Anglo Irish Bank, Sean Fitzpatrick for damages.
In the High Court on Monday morning, October 21 lawyers for the Quinns alleged that Mr Fitzpatrick, a bankrupt, “conspired” with others to enter into unlawful contracts.
The Quinn family want to join Mr Fitzpatrick to legal proceedings it has initiated against a number of parties including the former financial regulator and the Department of Finance.
Under the 1988 Bankruptcy Act, a debtor can not be sued by a creditor without permission from the High Court.
Mr Justice John Cooke heard that the Quinns are seeking to establish whether they will be able to claim against an insurance policy if they successfully sue Mr Fitzpatrick who was adjudicated a bankrupt three years ago.
The application to join Mr Fitzpatrick was opposed by the Official Assignee in bankruptcy Chris Lehane, who is the court appointed official whose role is to assist bankrupts in their obligations to their creditors.
Lawyers for the Quinns said that the family’s application could affect the administration of Mr Fitzpatrick’s estate if it could be established whether or not an insurance company will “stand behind” Mr Fitzpatrick’s actions between September 2007 and July 2008.
The case was adjourned until November 4th next.
As well as Mr Fitzpatrick the Quinns have launched actions against former directors including:
Declan Quilligan, Wetherby Place, London; Patrick Whelan, Coast Road, Malahide, Co Dublin; Lar Bradshaw, Church Road, Killiney, Co Dublin; Fintan Drury, Old Rissian Village, Kilquade, Co Wicklow; Noel Harwerth, Grosvenor Square, London; Anne Heraty, Highfield Road, Rathgar, Dublin;
Michael Jacob, Newtownpark Avenue, Blackrock, Co Dublin; Willie McAteer, Auburn Villas, Rathgar, Dublin; Gerard William McGann, Stonehouse, Donnybrook, Dublin and Edmond Francis Sullivan, Linden Fields, Grove Avenue, Blackrock, Co Dublin .
Earlier this month the High Court granted permission to the Quinn family to serve legal proceedings on former Anglo Irish Bank CEO David Drumm in the United States..
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.
Counsel added it is the Quinn’s intention that their 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.