Seán Dunne opens appeal over Irish bankruptcy ruling

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

Seán Dunne’s appeal against the High Court’s refusal to set aside his Irish bankruptcy has opened before the Supreme Court. The proceedings were reported on 26 March 2015.

Ulster Bank petitioned in February 2013 to have him adjudicated bankrupt over default on loans of some €161 million issued for Dublin properties. In March 2013, he filed for bankruptcy in Connecticut, claiming debts of $1 billion and assets of $55 million. He was adjudicated bankrupt in Ireland in July 2013.

In December 2013, Mr Justice Brian McGovern refused to set aside the Irish adjudication.

Bill Shipsey SC, representing Mr Dunne, argued that Irish law did not permit dual bankruptcy findings in different jurisdictions. His side also claimed there were no Irish legal protocols allowing the Official Assignee to deal with a US court-appointed trustee over an estate subject to dual proceedings.

Mr Shipsey argued that the proceedings put the two jurisdictions in conflict. He also argued that Nama and Ulster Bank, as secured creditors, would suffer no prejudice if the US adjudication remained in place and the estate vested in the US trustee alone.

Ulster Bank and Nama, Mr Dunne’s largest creditor, opposed the appeal. Lyndon MacCann SC, for Ulster Bank, argued that the High Court had statutory discretion to adjudicate bankruptcy despite foreign proceedings, and that a foreign ruling did not displace that power.

The appeal was being heard by the Chief Justice, Ms Justice Susan Denham, Ms Justice Mary Laffoy and Mr Justice Peter Charleton. It was expected to conclude on 26 March 2015.