IBRC still involved in 138 lawsuits five years after winding down

Paschal Donohoe

Finance Minister Paschal Donohoe told TDs that the IBRC is currently defending 111 cases and is the plaintiff in 25 recovery and enforcement actions.

Most of the cases were instigated prior to the appointment of special liquidators, but Mr Donohoe added: “In other instances, and in accordance with the special liquidators’ strategy, IBRC has issued proceedings with a view to maximising recovery, for debt due and owing, to enforce judgments obtained, for asset recovery or protection, or seeking damages for acts of professional negligence.”

The cases against IBRC include “various allegations (predominantly of mis-selling of financial investment products, mismanagement, negligence, breach of contract/breach of duty) in which various reliefs are sought against IBRC (generally to include a claim for damages and/or declarations concerning the validity of security)”.

Mr Donohoe added: “The special liquidators assess the merits of defending such litigation and, where deemed appropriate, IBRC Group legal implements the special liquidators’ strategy of reducing the number of defendant cases in the most cost effective manner possible.”