Gayle Killilea Dunne in dispute over seized painting, High Court hears

Gayle Killilea Dunne, wife of developer Seán Dunne, is in dispute with the trustee administering her husband's Irish bankruptcy over the ownership of a painting entitled King and Queen seized during a raid on a house in Co Kildare, the High Court has heard.

The painting, by artist Daniel O’Neill, was bought at auction in late 2011 for some €32,000.

Disputes over the ownership of the painting and concerning the ownership structure of a particular company, and to decide liability for costs of proceedings arising from the seizure of items from the house at Churchfield, Straffan, will be organised later this year if those matters are not resolved before that, Mr Justice Brian McGovern said.

Order

Separately, the judge made an order making Mr Dunne, rather than his estate in bankruptcy, personally liable for costs of proceedings in which Mr Dunne unsuccessfully challenged the entitlements of bankruptcy trustee,

Chris Lehane

, to see documents related to family law proceedings involving Mr Dunne.

Mark Sanfey SC, for Mr Lehane, said the personal costs order was sought so that, if necessary, Mr Lehane would be in a position to pursue recovery of costs after Mr Dunne exits from bankruptcy here in 2016.

Unless there was a personal costs order, Mr Dunne could bring various applications knowing his creditors, rather than himself, would have to pay the costs, counsel added.

Bill Shipsey SC, for Mr Dunne, had opposed as "pointless" a personal costs order and argued the costs should come out of the estate. Mr Dunne was "doubly bankrupt" arising from his bankruptcy in the US and Ireland, counsel said.

Recovered

The judge said he would grant a personal costs order against Mr Dunne but, if costs could not be recovered under that, they could be recovered from his estate in bankruptcy. He also directed the trustee should pay some €1,000 costs incurred by Mr Dunnes’ solicitors in copying the family law documents.

Last April, the High Court rejected Mr Dunne’s bid to quash a warrant permitting a team under Mr Lehane search the house at Churchfield last November when various assets, including artworks, were seized.

Mr Dunne claims he is not the owner of the property and says it is held in trust for his children by an Isle of Man registered company, Traviata. His wife, son John Dunne and a company, Traviata, also made claims in respect of some the items seized.