IBRC to pay its own legal costs in action by McKillen, court rules

All the parties involved in developer Paddy McKillen's High Court action aimed at preventing the sale of his IBRC loans to the Barclay brothers will pay their own legal costs following a High Court ruling.

Because Mr McKillen ultimately succeeded in acquiring the loans himself with the backing of international private investment firm Colony Capital, the case did not proceed to hearing but it is believed considerable legal costs were incurred during several pre-trial applications.

Burden on taxpayer

Mr McKillen and the Barclay side had both agreed they would pay their own costs

but State-owned IBRC argued Mr McKillen should pay the costs of its involvement. Otherwise, the burden would fall on the taxpayer, it was argued.

Cian Ferriter, for IBRC, argued it had been "caught in the crossfire of two warring parties".

Mr Justice Paul Gilligan yesterday ruled IBRC was not entitled to an order requiring Mr McKillen to pay its legal costs and he directed that IBRC pay its own costs.

The judge said there was no reason to depart from the ordinary rule that no order is made in cases which have become moot.

He was also taking into account the fact the various parties were involved in the loans sale process that had led to the High Court proceedings becoming pointless, he added.

The loans sale was not entirely due to events external to the legal proceedings or to unilateral action of one of the parties, he said.

“In essence, they were all involved in the very fact that lead to the proceedings becoming moot as between them.”

The judge also noted the main protagonists in the case were Mr McKillen and the Barclays and it was accepted no claim of wrongdoing had been made by Mr McKillen against the special liquidators of IBRC.