Property developer Liam Carroll has been joined as a defendant to legal proceedings relating to a planned €300 million mixed-use development at The Square shopping centre in Tallaght, Co Dublin.

In the action, it is claimed that Mr Carroll and two companies, Tafica Ltd and Aifca Ltd, knew or must have known of the existence of an agreement at the centre of the proceedings and had acted with the intention of interfering with due performance of the agreement and/or inducing property developers Larry O'Mahony and Thomas McFeely to breach the agreement.

The proceedings were initiated in the Commercial Court last July by Redfern Ltd, a company ultimately controlled by Noel Smyth and with registered offices in St Helier, Jersey, against Mr O'Mahony, Shrewsbury Road, Ballsbridge, Dublin and Mr McFeely, of Aylesbury Road, Dublin. They arise from an alleged contract agreement of August 4th, 2005.

Yesterday, Mr Justice Peter Kelly agreed to an application by counsel for Redfern to join Mr Carroll, of Sycamore Road, Mount Merrion, Co Dublin; Tafica Ltd, Chapel House, Parnell Street, Dublin and Aifca Ltd, Upper Mount Street, Dublin, as defendants.

The judge also agreed to allow Redfern amend its statement of claim in the action. The three additional defendants can apply to vary or discharge the order but must do so within 21 days of service of the proceedings on them.

In the action, Redfern claims it is the sole beneficial shareholder in another company, Alburn, while Mr O'Mahony and Mr McFeely are claimed to carry on business in a partnership which, it is claimed, controlled Lowe Taverns (Tallaght) Ltd through a shareholding in Aifca Ltd.

Redfern claims it and the partnership entered into a written agreement of August 4th, 2005, relating to the disposal of the partnership's interest in Lowe to Alburn, in exchange for Redfern's issue of shares in Alburn to the partnership. Redfern claims it, with the consent of Mr O'Mahony and Mr McFeely, secured planning permission for development of Phase III of The Square shopping centre in Tallaght, which is valued at more than €300 million.

Redfern says the development has been certified by South Dublin County Council for the extension of "substantial" urban renewal tax incentives, due to expire in June 2008.

It claims the alleged breaches of contract by the defendants have delayed work on the development and thus prevented Redfern from availing of the allowances.

Redfern wants a court declaration that the agreement of August 4th, 2005, is a valid and subsisting contract which is binding on the parties. It also wants specific performance of a draft shareholders' agreement of April 4th, 2007, and damages for alleged breach of contract.

In its amended claim, Redfern claims that, in their defence, Mr O'Mahony and Mr McFeely had claimed they, through their then jointly owned company Aifca, had entered in September 2006 into an agreement with Mr Carroll for the refinancing of their loan facilities which involved Mr Carroll's subscription for 50.25 per cent of the increased issued share capital of Aifca. Because of that, Mr O'Mahony and Mr McFeelly had said they were no longer in control of Aifca or its wholly-owned Lowe subsidiary.