Business
Seán Dunne cross-examines former official who oversaw his bankruptcy estate
DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Irish Times, click this post to read the original article.
Now-bankrupt Celtic Tiger property developer Seán Dunne told the High Court on Wednesday he believed he may be the only “dual bankrupt” in the world.
He made the comment in a case in which he is representing himself in his challenge to the validity of the appointment of the Irish officials who oversaw and continue to oversee his bankruptcy estate.
The businessman (71) was adjudicated a bankrupt in the United States and in Ireland in 2013, with bank debts of hundreds of millions of euro. He remains a bankrupt in both jurisdictions.
His Irish bankruptcy was extended in 2018 for a further 12 years because of material non-cooperation with the Official Assignee (OA) who looks after bankrupts’ estates. The extension was granted on the application of Chris Lehane, who was then the OA.
On Wednesday, Dunne began his cross-examination of Lehane during the first day of the High Court hearing.
He is challenging the validity of Lehane’s appointment as OA in 2008 as well as that of Lehane’s successors as officials overseeing his bankruptcy, Michael Larkin and Michael McNaughton. His claims are denied.
At the start of the hearing Judge David Nolan said the parties involved should “keep invective to a minimum” and avoid the personal during the trial, which is scheduled to last four days.
Dunne said there was “nothing personal” in the case he was taking, but “the State has a role and a role to protect the citizen from unjust attack”.
Dressed in a dark suit, white shirt and light green tie with blue pocket handkerchief, Dunne was accompanied in court by UK-based solicitor Blake O’Donnell.
Barristers Eddie Farrelly, Lyndon MacCann and James Doherty, led legal teams on behalf of, respectively, Lehane and Larkin; McNaughton and the Insolvency Service of Ireland; and the Department of Justice, the Attorney General and Ireland.
In his opening comments, Dunne said OAs could “take your family home, take your belongings” and seek to have you imprisoned.
He referred to Lehane as the “man who had done so much to me”.
Dunne said he had “never concealed an asset” and said legal teams who had acted for him in major commercial disputes during his career as a property developer had told him he was easy to deal with “because I told the truth”.
In opening remarks, Doherty said legal submissions made by Dunne in alleging that aspects of the law appointing Lehane were unconstitutional were “just made-up law”.
Statute had a presumption of constitutionality, he said, and arguments that documents had not been produced to prove something “did not come close” to proving what Dunne was claiming.
In evidence, Lehane referred to board minutes produced to the court and said he was validly appointed as OA by the board of the Courts Service in December 2008, as noted in the minutes, and said he took up the role in January 2009.
He said he had used a letter informing him of his appointment to open bank accounts in which millions of euro were held on behalf of the OA and to authorise the sale of properties as part of his work overseeing bankrupts’ estates.
He told Dunne he “absolutely stands over” his appointment and its validity.
Dunne asked Lehane detailed questions about his career in the Civil Service, which began as a clerical officer in 1978 with promotions over the years arising from seniority or the successful application for posts.
On several occasions Dunne referred to the absence of documents. At one stage he said there was no evidence to support what Lehane had said, with the judge responding that the evidence was Lehane’s testimony.
The case, expected to last four days, continues.
