The Court of Appeal dismissed Vincent O’Donoghue’s appeals against the striking out of his proceedings over the Government’s planned sale of 25% of its Allied Irish Banks (AIB) shareholding, and against the refusal to restrain the sale while the case was ongoing.
In a judgment delivered by Mr Justice Gerard Hogan on 14 June 2017, the court said the claim, as pleaded, disclosed no cause of action known to law. It held that the challenge to the Government’s decision was a non-justiciable political controversy, outside the courts’ role.
O’Donoghue had argued that selling part or all of the State’s AIB shareholding was unlawful because it was contrary to the common good under Article 6 of the Constitution. The judgment said there were no cognisable legal standards by which the Government’s decision to sell the shares could be assessed. Decisions about the economic policy and use of State resources were for the democratic process, it said.
The court also said the Constitution’s structure implied that the State had power to dispose of its assets. It referred to the State’s accountability to Dáil Éireann and, ultimately, to the electorate.
The judgment noted that the State had acquired more than 99% of AIB after the 2008–2010 financial crisis. Under the Credit Institutions (Financial Support) Act 2008, the State guaranteed liabilities of several institutions, including AIB. The Government later advanced about €21 billion to AIB under the Credit Institutions (Stabilisation) Act 2010 in return for the shareholding. The judgment said an initial public offering for the shares was then in progress.
The High Court had struck out the proceedings against all defendants under Order 19, rule 28 and its inherent jurisdiction. The Court of Appeal dismissed the appeals concerning the State defendants and affirmed the order striking out the claim against AIB, finding that no legal wrongdoing by the bank had been alleged. It also affirmed the refusal of interlocutory relief. The judgment therefore left no injunction in place to restrain the sale.