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Validity of promissory notes case starts

Wednesday, January 23 14:54:39

The State's legal team will later today defend against a legal challenge to the government's use of promissory notes to fund financial institutions.

This morning lawyers for businessman David Hall who has taken the case said they still did not know what the State's defence was as no written submissions had been made.

The President of the High Court Mr Justice Nicholas Kearns described as "somewhat startling" the fact that there were no written submissions from the State.

Senior Counsel Michael McDowell told the court draft submissions were being drawn up and would be ready soon. Mr Justice Kearns said the court would have to adjourn to allow time for Mr Hall's legal team to read the submissions. The case would then resume in the afternoon.

Mr Hall is challenging the validity of the promissory notes used to provide E31 billion in financial assistance to Anglo Irish Bank, Irish Nationawide and EBS. He claims the creation of the notes required a Dail vote which did not take place and therefore the notes and any payments resulting from them are invalid under the Constitution.