Publications & Insights Potential Prosecutions by Borrowers against Bank Officials
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Potential Prosecutions by Borrowers against Bank Officials

Thursday, 01 August 2013

Potential Prosecutions by Borrowers against Bank Officials

The recent High Court judgment in Kelly & Anor v. District Court Judge Ryan has confirmed that citizens have the right to bring private prosecutions. In this particular case borrowers instituted prosecutions against bank officials in the District Court. 

Hotelier, Mr. Patrick Halpin, initiated a private prosecution against two employees of IBRC (In Special Liquidation) (the "Bank") in the District Court after receivers were appointed over two of his companies last year. It was alleged by Mr. Halpin that the two bank officials had committed offences of dishonesty under the Criminal Justice (Theft and Fraud Offences) Act 2001 by virtue of representations made by them during discussions with Mr. Halpin and his accountant prior to the receivers being appointed. The charges were denied by both bank officials who in turn commenced proceedings in the High Court seeking to halt the private prosecution on the basis that the right to bring such a prosecution was effectively abolished by reason of the enactment of the Criminal Justice Act 1999. 

The High Court held Mr. Halpin did have the right to privately prosecute the bank officials while noting that the evidence to support Mr. Halpin's prosecution of the bank officials seemed weak. As with any private prosecution, Mr. Justice Hogan held that no further step in the prosecution could be taken without the express consent of the DPP. 

Mr. Justice Hogan's judgment, as confirmation of the rarely used right of citizens to bring private prosecutions, has the potential to open the way for criminal charges to be initiated by customers against bank officials. However it remains to be seen whether any such private prosecutions would be progressed by the DPP. 

For more information or advice on the above, please contact Mark Kavanagh.