A NUMBER of legal actions involving former Smart Telecom chief executive officer Oisín Fanning, arising from the October 2006 buyout of Smart by Smart YuRoE Broadband, a company controlled by businessman Brendan Murtagh, have come before the Commercial Court.
Two sets of proceedings brought by Mr Fanning were admitted to the court yesterday, while Mr Justice Peter Kelly also heard Smart Telecom plc intends to bring its own action against Mr Fanning.
Smart says it will allege Mr Fanning breached his fiduciary duties as chief executive officer of Smart in allegedly unlawfully diverting a corporate benefit of opportunity to his own use - the option to acquire the freehold interest in Smart's corporate headquarters at Citywest Business Park in Dublin.
Smart will also contend that Mr Fanning used Smart Telecom funds to acquire a 25 per cent shareholding in Outpost Property Holdings Ltd, owner of the freehold of the Smart headquarters premises, and holds his legal interest in those shares on trust for Smart Telecom.
Mr Fanning has brought his own proceedings under section 205 of the Companies Act against Outpost and Smart Telecom Holdings Ltd, which were yesterday admitted to the Commercial Court list in addition to his proceedings against Mr Murtagh, Dunheeda, Kingscourt, Co Cavan, and others.
In the Outpost proceedings, Mr Fanning claims he is a 25 per cent shareholder in Outpost.
He claims Mr Murtagh has caused accounts to be prepared showing Outpost owes Smart Telecom plc some €1.23 million but he denies Outpost owes that sum and has refused to approve the accounts.
In the Murtagh proceedings, Mr Fanning is claiming his severance agreement with Smart was a result of undue influence, breach of duty, misrepresentation or misstatement on the part of Mr Murtagh and his sons, Alan and Fergal, and is claiming damages against all three.
He also claims he is entitled to an indemnity against Mr Murtagh in relation to a loan of €5 million given to Mr Fanning by Anglo Irish Bank.
Mr Fanning claims Mr Murtagh put pressure on him to take out that loan to purchase shares in Smart Telecom.
He further claims Mr Murtagh was a shadow director of Smart Telecom.
Mr Murtagh and his sons have denied the claims.
The proceedings were admitted to the list of the Commercial Court yesterday on the applications of the defendants and with the consent of Mr Fanning.
The cases arise from the buyout of Smart in October 2006 by Calally, now Smart YuRoE Broadband, a company controlled by Mr Murtagh.
