Northern Ireland

Court rules against receiver over Sean Quinn legal fees trust fund

Sean Quinn lost control of his business empire when it collapsed six years ago. Picture by Paul Faith/PA Wire
Sean Quinn lost control of his business empire when it collapsed six years ago. Picture by Paul Faith/PA Wire Sean Quinn lost control of his business empire when it collapsed six years ago. Picture by Paul Faith/PA Wire

DONATIONS to a trust set up to pay former billionaire Sean Quinn's legal bills did not come out of his family's assets, a court has ruled.

A judge also refused to grant a declaration that the funding for the Fermanagh-born businessman was not a proper arrangement.

Sir Paul Girvan said: "The monies in question were kept out of the hands of the Quinns who could not call for them to be paid over to them."

Once Ireland's richest man, Sean Quinn lost control of his business empire when it collapsed six years ago.

Receiver Declan Taite was subsequently appointed by IBRC, formerly known as Anglo Irish Bank, to locate and collect any assets.

In proceedings issued in Belfast, he wanted the High Court to draw an inference that Quinn money was being paid into the Erne Group Trust.

With the family starved of financial resources for litigation in the Republic, supporters formed the trust in 2012 to help pay their legal costs.

A list of 35 individuals and companies have been identified as having contributed.

The trust has paid out nearly €1.7m towards the cost of the Quinn family's litigation and associated fees.

Although contributors remain publicly confidential, the scale of their donations was disclosed.

One gave €400,000 while another paid in €300,000.

Sixteen provided between €125,000 and €150,000 or equivalent amounts in sterling.

One married couple contributed €115,000 and £25,000.

Another donor was described as a company with strong commercial links to the former Quinn Group.

Two charities - the Northern Ireland Hospice and Marie Curie Cancer Care - received £1,000 each from the trust.

Mr Taite went to court in an attempt to clarify the situation surrounding the Erne Group.

But Sir Paul held that business links was not enough to advance the receiver's case.

"The Quinns could not control the use of the funds," he said.

The judge further rejected a claim that the money put into the trust came under the receiver's control.