Harbour Litigation Funding has been denied permission to fund a major case against the Irish state and a prominent businessman.
The ruling said Harbour’s involvement would contravene the ancient law of ‘champerty’. The case was the first time a direct challenge was made to the laws around third party funding in Ireland.
Laws around champerty were introduced in Ireland in 1634 and state that a person cannot profit from a lawsuit it has no interest in.
It is understood Harbour had agreed to put up a €10m pot for the claimant, Tony Boyle, represented by Eversheds.
Boyle’s company Persona Digital Telephony lost out on a mobile phone licence to a rival company, Esat Digifone, in 1996. He claims Esat won the licence by bribing then Irish minister for communications Michael Lowry.
He is bringing the case against Lowry, Esat boss Denis O’Brien, and the Irish state.
The presiding judge in the case Mrs Justice Donnelly said she had considered arguments made by Boyle’s legal team that the constitutional right to access the court should supercede the ancient law banning third party funding.
The law was abandoned in Britain in 1967, though litigation funding remains both a civil and criminal offence in Ireland.
Donnelly J ruled on Wednesday (20 April) that third party funding arrangements “cannot be viewed as being consistent with public policy in this jurisdiction”.
She added she had received a statement from the claimant that said he had “nowhere near” the estimated €10m needed to personally fund the case.
It is not yet known whether Boyle will drop the case.
Boyle’s company Persona Digital is represented by Eversheds, instructing Michael Collins SC and Colm O’Hoisin SC.
Businessman O’Brien instructed Meagher Solicitors principal Paul Meagher for the defence, who turned to Paul O’Higgins SC, Jim O’Callaghan SC and Darren Lehane.
The Irish state was represented by the Chief State Solicitor’s Office, instructing Conleth Bradley SC and John O’Donnell SC.
Irish politician Lowry was represented by Neil Buckley, instructed by Kelly Noone Solicitors.
The legal line-up
For the claimant, Persona Digital
Michael Collins SC and Colm O’Hoisin SC, instructed by Eversheds
For the first defendant, the minister for public enterprise, Ireland and the attorney general
Conleth Bradley SC and John O’Donnell SC, instructed by the Chief State Solicitor’s Office
For the second defendant, Denis O’Brien
Paul O’Higgins SC, Jim O’Callaghan SC and Darren Lehane, instructed by Meagher Solicitors principal Paul Meagher
For the third defendant, Michael Lowry
Neil Buckley, instructed by Kelly Noone Solicitors