The official administering Sean Dunne's Irish bankruptcy has agreed to be cross-examined about why he believes some asset transfers between the businessman and his wife were invalid. Gayle Dunne will also be cross-examined about the transfers in forthcoming High Court proceedings, the three-judge Court of Appeal was told. On that basis Ms Dunne's appeal against a High Court refusal to permit her lawyers to cross-examine the bankruptcy official, Chris Lehane, was resolved on Monday and did not proceed.

The development came after Ms Dunne, a former journalist who is also known as Gayle Killilea, won an earlier appeal against the High Court's refusal to allow her lawyers to cross-examine an American attorney involved in her husband's US bankruptcy proceedings. The Court of Appeal ruled then that Ms Dunne's representatives should be able to cross-examine Timothy Miltenberger, the lawyer acting for the "Chapter 7" trustee dealing with Mr Dunne's US bankruptcy.

The cross-examination dispute arose after Mr Lehane brought proceedings over the Dunnes’ alleged fraudulent transfer of assets in South Africa and Ireland. The couple agreed in 2005 and 2008 to transfer Mr Dunne’s interests in the Lagoon Beach Hotel, in Cape Town, and shares in a company named Mavior, among other assets, to her.

Ms Dunne, who denies the share transfers were invalid, claims Mr Lehane’s proceedings are unfair as they cover the same ground as proceedings in the United States. Mr Lehane maintains that the US trustee had offered to help ensure there was no duplication of proceedings.

In a ruling last month permitting the High Court cross-examination of Mr Miltenberger by lawyers for Ms Dunne, the Court of Appeal said Mr Lehane’s lawyers must be allowed to cross-examine Ms Dunne’s US attorney, Alec Ostrow, as well. It has also directed the High Court to reconsider Ms Dunne’s application for a strike out, or a stay, of Mr Lehane’s proceedings arising from her claim that the US is the appropriate jurisdiction.