The High Court has ruled that Seán Quinn's wife, Patricia, and the Quinns' five children are entitled to make arguments that the former Anglo Irish Bank breached Market Abuse Regulations and company legislation in its loans to the family in their action against the bank.
Mr Justice Peter Charleton was giving his ruling on a preliminary issue in the case being taken by the family. The Quinns allege that Anglo lent them more than €2 billion for the illegal purpose of propping up its own share price.
The judge said it would be contrary to public policy were the Quinns to be shut out from responding to the "flagrant illegality" they allege against Anglo and Seán Quinn.
He said if a series of financial transactions can be called "horrific" that epithet would apply to the allegations made by the Quinns against Anglo and Mr Quinn.
The main action being taken by the Quinns against the bank is due to be heard at a later date.
A Quinn family statement said they were very pleased with the outcome of today's judgment and welcomed the chance to present their case to the High Court in the fullest possible way.
IBRC, the former Anglo Irish Bank, said it would now go ahead with a full defence and counterclaim to the claims made by the Quinn family.
"IBRC, on behalf of the State, is seeking repayment in full of all outstanding monies due to it and believes there is no basis whatsoever to any of the claims being made by the Quinn family," it said.
