The High Court has refused an application by personal defendants in the Quinn-related conspiracy proceedings to discharge injunctions over assets linked to the International Property Group (IPG). It ordered the plaintiffs to lodge €5 million in court to fortify their undertakings as to damages, pending further order.
Mr Justice Michael Peart delivered the judgment on 6 August 2013. The injunctions had been made in July 2011: one restricted certain personal defendants from dealing with specified IPG assets, while later Mareva-type orders included the appointment of a receiver. The defendants argued that the undertakings supporting the orders had become worthless after Irish Bank Resolution Corporation (IBRC) entered special liquidation in February 2013.
The plaintiffs said the joint special liquidators had confirmed the existing undertakings and offered to ring-fence €5 million if required. The defendants argued that their potential losses could be much higher, citing an estimate of US$700 million and claimed lost rental income. They also sought a guarantee from the Minister for Finance.
The court held that IBRC’s liquidation did not, by itself, require the injunctions to be discharged. It considered the history of the proceedings, including a prior finding by Ms Justice Dunne that some defendants had breached the orders and were in contempt of court. The judgment said the balance of convenience remained in favour of keeping the injunctions in place, given the risk of renewed efforts to put assets beyond the receiver’s reach.
The judge also found that the defendants had not established a causal link between the losses they claimed and the injunctions themselves. On the affidavit evidence, those losses were more likely to arise from enforcement of loan securities, including through bankruptcy proceedings in Sweden. The court did not finally determine the disputed asset and loss issues, which could require a full hearing.
The undertakings as to damages remained unlimited in nature, the judgment said, but their real value was affected by IBRC’s liquidation. The €5 million fortification was described as additional comfort, not the decisive reason for keeping the orders. The court declined to require the Minister for Finance to provide an undertaking or guarantee, and ordered the plaintiffs to lodge €5 million in court pending further order. The judgment did not determine the underlying claims about the loans, securities or alleged losses.