US court throws out case over De Lorean
Thursday 13 February 1997
Judge MB Mukasey ruled that the government's case alleging conspiracy, fraud and negligence in the way Arthur Andersen audited De Lorean's accounts could not proceed in the Southern District Court of New York. He added that the Government could still pursue some of its claims in a lower state court but if it does so it cannot claim its costs, which are estimated at pounds 10m to pounds 15m.
The Government began the lawsuit in 1985 - three years after the Belfast plant collapsed after having had pounds 70m of taxpayers money pumped into it to build John De Lorean's gull-winged sports car.
In April last year the judge dismissed the Government's claim that Arthur Andersen had violated the Racketeer Influenced Corrupt Organisations Act, under which courts can award triple damages. Then four months later it ruled sensationally that confidential Cabinet papers relating to the De Lorean affair should be made open to public inspection.
The papers showed the De Lorean project had first been approved by a Labour government and then kept alive by the Conservatives for political reasons.
In dismissing the Government's claim, the judge noted that in one memorandum, the Secretary of State for Northern Ireland had said it would be "disastrous both politically and commercially to pull the plug on the company at this stage".
The papers revealed Labour's Northern Ireland Secretary Roy Mason had pushed the project through Cabinet believing the investment would deal a "hammer blow" to the IRA.
Successive Conservative Secretaries of State kept the plant going, fearing that to pull out would raise question marks over continued state aid for British Leyland and the Belfast shipyard Harland and Wolf.
The judge said that the long-running lawsuit had created a "Niagara of paper" in which the Northern Ireland Department of Economic Development had shown itself to be "a singularly intractable participant".
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Canadian woman suing police who locked her in van with sex offender who then raped her
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Gay couple buy JebBushForPresident.com web domain, and refuse to sell
Canadian woman suing police who locked her in van with sex offender who then raped her
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
Stephen Fry explains what he would say if he was 'confronted by God'
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...