The High Court has ordered the billionaire Barclay brothers to provide a limited disclosure of documents to property investor Paddy McKillen in advance of next month's hearing of his challenge aimed at preventing the sale to the Barclays of hundreds of millions worth of his loans with Irish Bank Resolution Corporation (IBRC).
Mr Justice Michael White said Mr McKillen's lawyers must get discovery of certain communications between David and Frederick Barclay and some of their companies with the Department of Finance, IBRC and the National Asset Management Agency.
The communications, between any person or entity on behalf of the Barclay interests, or any of the trustees of their family settlements, relate to the proposed acquisition by Barclays of Mr McKillen’s loans with IBRC.
Discovery orders
Mr Justice White said he was concerned to safeguard the bid process for sale of the IBRC loans next month. If any issue arises in relation to the discovery orders, the court retained discretion to examine those documents and if necessary refuse to include them as part of discovery, he said.
It was also essential the March 4th trial date of Mr McKillen’s challenge is kept in place, he said.
Mr McKillen, who last year lost his UK court battle against the Barclays for control of three luxury London hotels in the Maybourne group, is seeking declarations the Barclays are not entitled to acquire his loans personally or indirectly through other entities and that IBRC is not entitled to sell them to the Barclays.
He also seeks damages for breach of contract, conspiracy and intentional interference with his economic interest.
The claims are denied.
Unduly oppressive
The Barclays had opposed his application for further discovery arguing that would be unduly oppressive and that full disclosure had already been made as part of last year's case in London.
Belfast-born Mr McKillen drew down a number of property loans from the former Anglo Irish Bank, now IBRC. Part of the loan facility, of around €300 million, was secured on Mr McKillen's shares in Coroin, the company at the centre of the London High Court case.
Mr Justice White said, while there was substantial court-ordered discovery during the London case, the reliefs sought by Mr McKillen in Ireland are different.
He said McKillen was seeking to introduce into the Irish proceedings matters which were the focus of extensive evidence and argument during the English case.
