The parties involved in a series of suits and countersuits concerning the affairs of the Web Summit technology events firm have agreed to continue exchanging discovery documents until mid-May.
The cases are still at a pretrial stage, with the parties preoccupied by the 14 million documents collected in the process of providing documents they agreed to discover as well as those the High Court ordered them to share.
Mr Justice Mark Sanfey ruled last July that Web Summit must release briefing papers provided to its board of directors, as well as monthly management accounts and salary details.
These documents, along with various other categories of files, must be shared with Graiguaeridda Ltd, the corporate entity of Web Summit cofounder David Kelly, who owns 12 per cent of the business. Other categories of documents sought by either side were agreed without the court’s assistance.
Graiguearidda is suing Web Summit’s holding company Manders Terrace Ltd, its chief executive, Patrick Cosgrave and his entity, Proto Roto Ltd, claiming oppression of shareholders’ rights under section 212 of the Companies Act, 2014.
The respondents dispute that any oppressive conduct took place and have countersued.
On Monday, the head of the Commercial Court, Mr Justice Denis McDonald, was informed that Graiguearidda and its counterparts had agreed to extendthe period in which they had to complete their discovery obligations by three weeks.
Barrister Frank Kennedy, for Graiguearidda and Mr Kelly, said it was agreed between his clients and Manders Terrace, represented by Bernard Dunleavy SC, that they would continue discovering documents until May 17th.
The judge made orders extending the period.
The court also heard that a similar three-week extension was sought and granted in actions involving Daire Hickey, another minority shareholder in Web Summit, and his commercial vehicle Lazvisax Ltd.
Mr Hickey, through Lazvisax Ltd, represented by Kelley Smith SC, is also suing Mr Cosgrave and Proto Roto over alleged oppression of his rights as a minority shareholder.
A 7 per cent shareholder in Manders Terrace through Lazvisax, Mr Hickey claims Mr Cosgrave deliberately sought to harm his reputation and to ensure he received no value for his minority stake. These claims are denied.
In proceedings by Manders Terrace, Mr Cosgrave claims Mr Kelly was involved in secret efforts to set up an investment fund for his own personal gain by using the resources of the business.
Manders Terrace is seeking orders that Mr Kelly was in breach of fiduciary duty likely to give rise to a loss of US$10 million (€8.63 million) to the Web Summit company.
Mr Kelly, through Graiguearidda, denies the allegations.
