The Supreme Court has refused to pause a High Court case-management order in litigation involving the Bank of Ireland and four O’Donnell defendants. It dismissed the stay motion, while saying the appeal should be prioritised for hearing.
In a judgment delivered on 8 December 2015, Chief Justice Susan Denham said Brian O’Donnell and Mary Patricia O’Donnell lacked standing to bring the application because they had been adjudicated bankrupt in August 2013. Their property rights, including the right to litigate over matters forming part of the bankruptcy estate, had vested in the Official Assignee, the court said. It was for the Official Assignee to decide whether the litigation should proceed on their behalf.
The underlying proceedings concern claims about ownership of shares in three companies, an account of money received or paid by one company, and, alternatively, damages for alleged fraud and conspiracy. Those are claims pleaded in the proceedings; the Supreme Court judgment did not determine them.
The remaining applicants, Blake O’Donnell and Bruce O’Donnell, sought a stay of an order made by Mr Justice McGovern in July 2014. That order set deadlines for motions concerning striking out defences and counterclaims, and for an application to join third parties. The appeal also referred to McGovern’s refusal to recuse himself over alleged objective bias. The remaining appellants raised his mortgage and associations with the bank. McGovern had said his and his wife’s borrowing with the bank was discharged, and that he held a bank account but had no current borrowing or shareholding in it.
The Supreme Court considered the principles governing stays and the law on objective bias. It did not grant a stay to Blake and Bruce O’Donnell. The judgment records that the High Court matters stood adjourned pending the Supreme Court appeal; it does not decide the appeal itself. The court said it would discuss directions with the parties to prioritise the appeal, and dismissed the motion for a stay.