INVESTMENT managers Tilman Brewin Dolphin may have to cease operation for a month from the end of September, the High Court heard yesterday. Tilman will open for business as usual today and clients will have access to their funds.
Barrister Andrew Walker told Judge Barry White of this possibility after the court refused to stop Goodbody Stockbrokers from pulling the plug on a financial services agreement it has had with Tilman since 2010.
Judge White said Tilman was seeking a mandatory injunction restraining Goodbody from terminating the agreement next Friday, or 30 days after it had threatened to do so on August 15.
Following the judgment, Mr Walker said Tilman could not possibly find a new financial services provider within four days to deal with the interests of 1,200 clients.
Tilman would require at least a further two weeks until September 30.
Mr Walker added that Tilman director Matt Minch had prepared a fresh affidavit which set out steps Tilman had taken to find a new provider and what further steps required to be taken.
Rossa Fanning, counsel for Goodbody, said it would be most unusual for the court to allow new evidence to be entered immediately after Tilman had lost its application.
"What Tilman is doing is asking the court to appeal its own judgment and grant a stay of two weeks," he said.
Mr Walker said the original agreement had recorded six months as a reasonable time to allow both companies to disengage and it just could not happen by Friday.
"It may well be the case that my client will have to cease operation on September 30 for a month but they just do not know," Mr Walker said.
Judge White said he did not consider he could engage in micro-management of the proceedings and did not intend to vary his judgment.
He felt the only manner in which the matters could be resolved was by agreement between Tilman and Goodbody.
Judge White said the granting of an interlocutory injunction was likely to determine the issues between the parties in favour of Tilman and that a full trial would be unlikely or would be unlikely to be heard before the expiry provision contained in the agreement.
He was not satisfied there was a strong likelihood of Tilman succeeding at the hearing of the action.