The independent trustee appointed by the bankruptcy court in Boston hearing David Drumm's case has decided to countersue Anglo Irish Bank.
In a twist that few had predicted, Kathleen Dwyer, a lawyer appointed by the judge to deal with the case, says there is merit in David Drumm's arguments that the €8.5m loan he took from Anglo was fraudulently changed by the bank.
The independent court officer says Anglo Irish Bank acted improperly and she says there are also grounds for Mr Drumm to receive compensation from Anglo Irish Bank for loss of earnings and for other claims which Mr Drumm has made.
Lawyers for Anglo Irish Bank have filed papers to have the trustee - Kathleen Dwyer - dismissed and their own person appointed. They would not comment on the day's proceedings.
The next step in the case will be when the presiding judge listens to the case and makes a decision on whether to change the trustee.
Anglo Irish Bank is fully within its rights to ask for a new trustee but it is entirely up to the judge to decide in what is rapidly becoming a complex and surprising court case.
