By Harry Fehily, Managing Partner, Commercial Litigation and Dispute Resolution Unit
A three judge divisional court of the High Court was convened this week to hear business man Paddy McKillen’s challenge in respect of NAMA taking over loans from Anglo Irish Bank.
A three judge Divisional Court is only ever convened when the case is of major legal or constitutional importance. The matter is being heard in the Commercial Court with some of Ireland’s most prestigious judges sitting. The President of the court, Mr Justice Kearns, is hearing the case with Mr Justice Peter Kelly and Mr Justice Frank Clarke.
Another indication of the seriousness to the State of this challenge is Attorney General, Senior Counsel Paul Gallagher leading the State’s legal team for NAMA.
The challenge to NAMA is being taken by Paddy McKillen and 15 companies. Arguments challenging NAMA taking over the plaintiffs’ loans include violation of rights to fair procedure as there are no provisions to make representations to NAMA, and violation of property rights due to the far reaching powers of NAMA which normal lenders do not have. Paddy Mckillen claims all of his loans are performing and that a takeover by NAMA will damage his reputation and ability to raise funds internationally.
The case has been listed for four days and the outcome will have implications for all persons whose loans are transferred into NAMA.
For further information contact Harry Fehily of our Commercial Litigation and Dispute Resolution Unit.