Setback for Gayle Killilea as judge rules asset case can go ahead
GAYLE Killilea, the wife of bankrupt property developer Sean Dunne, has suffered a major setback in her bid to hold on to millions of euro in assets transferred to her by her husband.
The High Court yesterday ruled that Irish legal proceedings brought over the alleged fraudulent transfer of assets can continue to be heard in this jurisdiction. Mr Justice Brian McGovern dismissed the second leg of a challenge brought by Ms Killilea against Christopher Lehane, the official assignee handling Mr Dunne’s bankruptcy.
She sought the dismissal of the proceedings on grounds that Ireland was not the appropriate jurisdiction for them to be heard.
Other proceedings aimed at reversing asset transfers are also being taken in the US by Richard Coan, a bankruptcy trustee in Connecticut.
Carlow-born Dunne, a prominent Celtic Tiger-era developer, is currently undergoing a dual bankruptcy process in both countries.
He filed for bankruptcy in the US in 2013 with debts of around €700m. The same year he was also adjudicated bankrupt in Ireland following an application from Ulster Bank.
On Tuesday, his Irish bankruptcy was extended by 12 years over his failure to co-operate with Mr Lehane.
Both Mr Dunne and Ms Killilea admit substantial assets were transferred to her.
However, they maintain these were lawful transactions that occurred at a time when
Mr Dunne was solvent. The High Court heard last year the couple were legally separated.
Yesterday, Mr Justice McGovern said the High Court had already held that the determination of the Irish proceedings, under accepted legal doctrines, would bind Mr Coan
from relitigating the matter in the US courts.
“Having reached those conclusions, it is difficult to see how the defendant (Ms Killilea) will be unfairly prejudiced if the matters proceed in this jurisdiction,” he said.
He also said all of the assets claimed by Mr Lehane are Irish, with the exception of a hotel in South Africa,
which is held through an Irish firm.
None of the asset loan transactions, share transfers or assignment which are at the centre of this case, has any connection with the US and this has been recognised by the US courts, he said.
The judge concluded there was no question Ms Killilea would have to litigate or defend the fraudulent transfer proceedings in two jurisdictions and will only have to do so in Ireland.
Mr Lehane alleges directors loans and shares controlled by Mr Dunne in a company called Mavior were fraudulent transferred to Ms Killilea in an effort to defeat Mr Dunne’s creditors.
The claims are denied. Last June, Mr Justice McGovern ruled that the bringing of the fraudulent transfer proceedings here did not conflict with US law.