Saturday 24 September 2016

Children of Gorse Hill solicitor Brian O'Donnell face questioning in court over gifts from parents - including first edition of James Joyce's Ulysses worth €42k and €300k painting

Tim Healy

Published 06/10/2015 | 12:07

The O’Donnells’ four children – (from left to right) Alexandra, Blake, Blaise and Bruce – also attended yesterday's hearing at the Commercial Court, Dublin.
The O’Donnells’ four children – (from left to right) Alexandra, Blake, Blaise and Bruce – also attended yesterday's hearing at the Commercial Court, Dublin.

RETIRED solicitor Brian O'Donnell's adult children face questioning in court over a number of gifts given to them by their parents including a first edition of James Joyce's Ulysses bought for €42,500 in 2007.

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The items also include a painting by Leo Whelan entitled "Waiting" which was bought by Mr O'Donnell and his wife Mary Patricia for €306,593 in 2007, the High Court heard.

The question of whether these and other antiques and art works were gifted to the O'Donnell children can now be the subject of questioning in court as part of the bankruptcy of their parents, Ms Justice Caroline Costello ruled.

Blake, Bruce, Blaise and Alexandra O'Donnell can be examined under oath over the gifts by lawyers for the court official appointed to handle their parents' bankruptcy, the judge said.

Gorse Hill
Gorse Hill
An exterior view
Brian O’Donnell leaves Gorse Hill for the last time

Only Bruce was in court today. 

Bruce said his father and brother Blake, who normally represent the family, were in the UK.

Official assignee in bankruptcy, Chris Lehane, sought the examination order in relation to the contents of the former family home, Gorse Hill, Killiney, Co Dublin.

Last January 28,  on foot of a warrant obtained by Mr Lehane and the bankruptcy inspector, a search was carried out of Gorse Hill and certain items were seized. 

However, Mr Lehane  had said there is confusion about the location of individual assets.  Items like the Leo Whelan painting were not in Gorse Hill during the search as Mr O'Donnell said it was loaned to him by the children and was in his rented property in East Haxted in England, Ms Justice Costello said.

Ordering the examination of the O'Donnell children under oath, the judge also rejected an application by the family for the quashing of the January  warrant and the return of the items seized.

Blaise and Alexandra O’Donnell
Blaise and Alexandra O’Donnell

She said the warrant had already been executed and the matter had already been appealed to the Court of Appeal.  The O'Donnells could not seek recission of a High Court order while at the same time appealing the matter as this amounted to an abuse of process, she said.

Ms Justice Costello said when Brian and Mary Patricia O'Donnell came to a settlement agreement with Bank of Ireland in 2012 in relation to a €71.5 million debt, the solicitors representing them told the bank that they (the solicitors) were holding certain contents of Gorse Hill until the legal proceedings over the debt were finished.  The solicitors also said if the O'Donnells failed to achieve relief in those proceedings, they "will renounce all and any claims" to the contents of the house.

After they were declared bankrupt, the official assignee, Mr Lehane, in 2014, sought information from the O'Donnells in relation to the acquisition and disposal of a number of personal items in the  house such as antiques, arts works and rare books, with a combined potential value of millions.

Ms Justice Costello said Mr Lehane's office identified personal chattels with an acquisition of €1.5m,  the majority of which did not appear to have been accounted for by the O'Donnell parents.

Mr O'Donnell ultimately indicated that many of the items were gifts to the children and were part of the settlement agreement reached with Bank of Ireland, the judge said.

However, the O'Donnells now maintain most of the valuable items were not in fact part of the settlement agreement and did not accept they form part of the bankrupt estate, the judge said.

It is clear that assets which may form part of the bankrupt estate were not present when the search was carried out last January, the judge said.

It is clear the official assignee has concerns assets may have been removed  and it would not be appropriate to grant the O'Donnell application for the return of the items that were seized.

The judge also rejected an O'Donnell application that the a named official in the official assignee's office be removed from managing their bankruptcy.  The O'Donnells had claimed the official had a conflict of interest as he was a former employee of the receiver appointed over their assets by Bank of Ireland.

Ms Justice Costello said the O'Donnell claims were based on unwarranted assumptions and "a very deep distrust and suspicion of anyone dealing with their affairs."

But this fell very far short of establishing any wrongdoing on the part of the official to justify removal, she said.

She further rejected an application by the O'Donnells for liberty to cross-examine Mr Lehane and for disclosure of documents held by Mr Lehane. This application was based on a "fundamental misunderstanding" of the relevant part of the law governing bankruptcy, she said.

In granting Mr Lehane his application to question the O'Donnell children about the Gorse Hill contents, the judge said it was incumbent on the children to provide such information as is necessary to establish their alleged title to the chattels which may be part of the bankrupt estate.  "This they have singly failed to do to date", she said.

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