Mr Fingleton (87), who is in ill health, ran the lender from 1971 to 2009, as managing director and chief executive. At its height in 2007 it reported assets of €16bn but a year later it was a casualty of the financial crisis.
Mr Fingleton’s ill health meant he was unable to give evidence in the case.
Liquidators for Irish Banking Resolution Corporation (IBRC) took the case against Mr Fingleton who denied the allegations.
INBS losses had been estimated by IBRC at €6bn but a figure of around €250m in damages was being pursued relating to five loans made by INBS, allegedly approved by Mr Fingleton.
Mr Fingleton, acting through his wife, Eileen Fingleton and son Michael Fingleton jnr, under their powers of attorney, made several challenges and appeals to halt the case, originally taken in 2012, but ultimately failed.
After closing submissions on Friday Mr Justice Michael Quinn reserving judgment.
Barrister Lyndon MacCann SC for the plaintiff had said it was IBRC’s case that INBS operated on a speculation that property could only “go up, and up, and up, and up” and that a “blasé” attitude had been taken to warning letters from auditors and the financial regulator.
Counsel had said the claim against Mr Fingleton was for damages for alleged “profound mismanagement” of INBS which he led for 38 years.
Compensation was sought for “huge losses” for the alleged “negligent mismanagement in the stewardship of the society over decades”, the court heard.
The five loans “approved” by Mr Fingleton relate to property projects in Ireland, France and the UK between 2006 and 2008.
Mr MacCann had said Mr Fingelton “gambled” with the society’s money when he himself allegedly approved “speculative, risky” commercial loans, which sometimes had already been greenlit by him before they were taken before the board of directors.
Counsel for the Fingleton side claimed there had been “black holes after black holes” in the case, amounting to a lack of evidence that meant there could be no adverse finding against Mr Fingleton.
Solicitor Niall Clerkin had said there were “large substantial tracts of documents missing” in the case and that important witnesses had not been called. Mr Clerkin said this ultimately amounted to an “unfairness” against the Fingleton side’s ability to defend the case.
The case began on May 6, with 41 days of evidence and submissions before Mr Justice Quinn and 1.6 m documents of discovery.
The Fingleton side was represented by solicitors Kevin Lynch and Mr Clerkin of Clerkin Lynch LLP, senior counsels John D Fitzgerald and Mr MacCann, instructed by McCann Fitzgerald Solicitors, represented the IBRC side.
State-run National Asset Management Agency (Nama) took over INBS’ commercial property loans in 2010. In 2011 the government merged what was left of INBS and Anglo Irish Bank to create IBRC.
Mr Fingleton was a prominent business figure during the Celtic Tiger, reported to have been worth around €75m in 2006. The courts heard his wealth is now €25,000 in two personal bank accounts while he has outstanding judgment debts of more than €10.7m
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