Quinn family begin bid to sue former Anglo boss FitzPatrick
The family of bankrupt former billionaire Sean Quinn have today sought permission from the High Court to sue former Anglo Irish Bank Chairman Sean FitzPatrick for damages.
The Quinns require the permission of the court to sue Mr FitzPatrick because he has been adjudicated a bankrupt.
Earlier this month, it emerged the Quinns intend to sue 10 other former Anglo directors, the Central Bank and Department of Finance in their capacity as regulators, over loans of some €2.34bn allegedly unlawfully issued by Anglo to Quinn companies during 2007 and 2008.
It is alleged those loans were intended to fund margin calls on Contract for Difference positions held by the Quinn family in Anglo shares.
Today, the High Court heard Mrs Patricia Quinn and her five children claim that between September 2007 and July 2008, former Anglo Chairman conspired with others to enter into unlawful conspired with others to enter into unlawful contracts.
Stephen Walsh Bl for the Quinns said his clients were applying to the court under Section 136 of the Bankruptcy Act for permission to bring the damages action against Mr Fitzpatrick.
The alleged actions occurred prior to Mr Fitzpatrick being adjudicated as a bankrupt in 2010.
The court heard the claim may not be brought against Mr Fitzpatrick's estate, which is administered by the Official Assignee in Bankruptcy Mr Chris Lehane.
Counsel said the claim maybe be brought against an insurance policy which covered Mr Fitzpatrick in his capacity as Chairman of Anglo.
At this point the Quinn's did not know if this insurance policy exists or not, or if it would cover the claim.
Mr Justice John Cook, who said he would need time to consider the application, adjourned the matter for two weeks.
As well as Mr Fitzpatrick the Quinns have launched actions against former directors - 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; Edmond Francis Sullivan, Linden Fields, Grove Avenue, Blackrock, Co Dublin and David Drumm of Old Colony Road, Wellesley, Massachusetts, US.
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.
They are claiming damages against all defendants for alleged conspiracy, breach of duty including statutory duty and fiduciary duty, negligence, misfeasance in public office.
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 on grounds those were unlawfully made to prop up Anglo's then plummeting share price.
The existing action against IBRC, known as the main action, has been "parked" pending the conclusion of criminal proceedings against Mr Whelan, Mr McAteer and Mr FitzPatrick.
