Sean Quinn family suffer a setback in loans liability case
The family of Sean Quinn cannot rely on alleged illegality by the former Anglo Irish Bank as part of their case denying liability for €2.34bn in loans to Quinn Group-related companies, the Irish Supreme Court ruled.
The five-judge court upheld an appeal by Anglo's successor IBRC and liquidator Kieran Wallace, dealing with a preliminary issue in advance of June's scheduled High Court hearing.
Legal sources say the decision could shorten the Quinns' looming High Court case, which is due to last several weeks.
That issue related to what Mr Quinn's wife Patricia, and the couple's five children, say were statutory and regulatory breaches by the bank in relation to guarantees and security given by the Quinns for the loans.
IBRC denies illegality and said even if it were established that would not provide basis for the Quinns denying liability for their security and guarantees.
Mr Justice Frank Clarke, on behalf of the Supreme Court, said the High Court substantially found the Quinns could rely on alleged serious breaches of the Companies Act and EU Market Abuse Regulations.
Having analysed the issues, the Supreme Court found in favour of IBRC. The judge concluded the contracts, which may breach the law and the regulations, "are nonetheless enforceable".