A MINING company ignored its own internal investigation finding exonerating its deputy chairman of any sexual impropriety when it issued a press release about a proposal to seek his resignation following a sleep walking incident at a mine accommodation block in Mozambique, the High Court was told yesterday.

Former Kenmare Resources deputy chairman Donal Kinsella (67), Woodpark, Dunleer, Co Louth, has brought a libel action against the company and its chairman, Charles Carvill, Well Road, Warrenpoint, Co Down, over the release issued in July 2007.

It stated the board was to seek Mr Kinsella’s resignation as chairman of the company’s audit committee arising from “an incident” in which he sleepwalked into the room of company secretary Deirdre Corcoran during a trip to the company’s Moma mine in Mozambique on May 9th, 2007, where a board meeting was held.

As a result of that release, Mr Kinsella became a national and international “laughing stock” over sexual impropriety allegations of which he had been exonerated before the press release issued, his counsel Eoin McCullough SC said.

In proceedings before Mr Justice Eamon de Valera and a jury, Kenmare denies libel and pleads the press release did not have the meanings complained of.

Opening the case, Mr McCullough said Mr Kinsella was a married man with six grown children who had established a good reputation in the business world.

On a trip to the company’s mine, because of demands on the accommodation block, Mr Kinsella gave up his room to Ms Corcoran and shared with Mr Carvill, counsel said.

There was a meal and everyone had a reasonable amount to drink before Mr Kinsella went to bed, counsel added.

Mr Kinsella was in the habit of sleepwalking, did not wear pyjamas in bed and had also been on strong medication at the time, counsel said.

He had appeared three times at Ms Corcoran’s door and at one stage was shouted at by Michael Carvill to go back to bed.

When they got back to Ireland, Charles Carvill told Mr Kinsella there had been a complaint and Mr Carvill suggested a solicitor, Norman Fitzgerald, of O’Donnell Sweeney, should investigate the matter.

In his report, Mr Fitzgerald concluded Mr Kinsella had been sleepwalking, there was no conscious attempt to enter Ms Corcoran’s room and he did not have any improper motives in opening her door, counsel said.

Mr Kinsella agreed to apologise verbally and in writing to Ms Corcoran and did so but the board later sought and secured his resignation both as audit committee chairman and as a director of Kenmare.

The court would hear Mr Kinsella tried to have the matter mediated.

This was a case about Kenmare saying Mr Kinsella had done something he had not done, Mr McCullough added. What was important was that in the press release Kenmare had ignore the “crucial finding” of the internal inquiry that Mr Kinsella had been absolved of any impropriety towards a woman.

The case continues.