IRISH BANK Resolution Corporation, formerly Anglo Irish Bank, having alleged “corporate fraud on an enormous scale” against bankrupt businessman Seán Quinn, cannot be correct in insisting he has no legal right to defend himself in proceedings which could result in judgment of more than €2.3 billion being entered against him, Mr Quinn’s lawyers have told the Commercial Court.
Anglo contends, because Mr Quinn is a bankrupt and the Official Assignee in Bankruptcy has decided not to participate in the Quinn family’s action to avoid liability for loans by Anglo to the Quinn group, Mr Quinn has no entitlement under law to personally defend claims against him in the proceedings.
Anglo also contends, if it ultimately secures a judgment against Mr Quinn and he was not permitted to defend the case, that would not amount to “findings” by a court against him.
Rejecting Anglo’s arguments yesterday, Brian Cregan SC, for Mr Quinn, said it cannot be the case Mr Quinn has no entitlement to defend the very serious claims against him, including claims of fraud and conspiracy.
Anglo has claimed Mr Quinn conspired to obtain loans of up to €2.8 billion for an illegal purpose but Mr Quinn has delivered a full defence denying all those claims and alleging Anglo at all times knew the real purpose of the loans was to meet margin calls on contract for difference positions in the bank, counsel said.
Mr Quinn was entitled to defend on grounds including his rights under the Constitution and European Convention on Human Rights to vindication of his good name, access to court, fair trial, equality before the law and fair procedures, counsel argued.
The fact Mr Quinn has been declared a bankrupt and the official assignee is not taking part in the case does not deprive Mr Quinn of rights which are personal rights, not property rights vested in the official assignee, counsel argued.
It was not tenable for Anglo – having joined Mr Quinn to the proceedings to claim judgment of up to €2.8 billion against him and having secured his adjudication as a bankrupt – to now argue he cannot defend the case because he is bankrupt, counsel said.
It was also “risible” to suggest any entry of judgment against Mr Quinn would not be adversely publicly perceived, he said.
Mr Cregan will continue his arguments today before Mr Justice Peter Kelly in the application by Mr Quinn to be permitted to defend the claims against him.
Mr Quinn, his wife Patricia and their five adult children are seeking to avoid liability for loans of some €2.34 billion on grounds the loans were issued for the unlawful purpose of propping up Anglo’s share price. Anglo denies the claims but last year joined Mr Quinn and two former Quinn Group senior executives – Liam McCaffrey, former Quinn Group finance director, and Dara O’Reilly, chief executive of Quinn Group (NI) Ltd – as third parties.
Mr Quinn was again in court yesterday but was represented by solicitors and counsel. This was the third set of different counsel to represent him, the judge said. “It’s a bit like a legal Lanigan’s Ball,” he remarked.
