The High Court has refused Gayle Dunne’s application to strike out proceedings over the alleged fraudulent transfer of assets associated with the Lagoon Beach Hotel, holding that the claim had not been decided in the United States and that the evidence did not establish an abuse of process.
Mr Justice Max Barrett delivered judgment on 8 November 2024. The application sought dismissal on the grounds of res judicata, the rule in Henderson v Henderson, abuse of process or the court’s inherent jurisdiction. The judge refused all reliefs sought. He did not decide the underlying allegation that assets had been fraudulently transferred.
The proceedings were brought by Christopher Lehane, acting as official assignee in the Irish bankruptcy estate of Sean Dunne. Issued in 2014, they seek reversal of an alleged transfer involving Mavior assets, principally the Lagoon Beach Hotel. The judgment states the claim is grounded on section 10 of the Statute of Charles.
Dunne argued that the issues had been dealt with, or should have been raised, in US bankruptcy litigation. Mr Justice Barrett reviewed the US proceedings and distinguished the Irish statutory fraudulent-transfer claim from claims tried there. He found that a separate US adversary proceeding that mirrored the Irish case had been withdrawn so the Irish proceedings could continue. The US jury and subsequent rulings did not adjudicate the Irish claim concerning the Mavior assets.
The judgment records that Lagoon Beach and related matters featured in evidence, discovery requests and submissions in the US litigation. But the judge said those references did not establish that the relevant claim had been adjudicated. He also noted conflicting accounts about whether Lagoon Beach was included in certain US claims, and considered the contemporary pleadings, verdict and rulings significant to what had actually been decided.
Mr Justice Barrett concluded there was no US adjudication capable of supporting res judicata in Ireland. He also rejected the Henderson argument, finding no abuse of process by the official assignee or the US chapter 7 trustee. He said the Irish proceedings had continued with approval from the US bankruptcy court and had previously been considered by Irish courts.
The ruling concerns only Dunne’s application to dismiss. The underlying Irish proceedings remain unresolved by this judgment.