DEVELOPER BERNARD McNamara has settled his legal action against five former business associates in which he claimed €101 million damages over alleged breaches of a 2004 shareholders agreement.

The settlement was announced to Mr Justice Peter Kelly at the Commercial Court yesterday but no details were disclosed. The judge consented to strike out the case with no order.

The proceedings by Mr McNamara were against Gary Smith, Hazelhatch, Newcastle, Co Dublin; Ivor Dougan, Booterstown, Co Dublin; Paschal Taggart, Fitzwilliam Square, Dublin; Terry Cooney, Fitzwilliam Square, Dublin; and Shane Taggart, a banker, Brompton Road, London.

The case arose from Mr McNamara and the five coming together in 2004 to acquire properties within a site adjacent to Grafton Street, Dublin, to build a commercial development. The proceedings were transferred to the Commercial Court last month.

Last June, a bankruptcy petition against Mr McNamara was issued by Mr Smith and Mr Dougan over his failure to pay a sum agreed under a settlement of court proceedings.

Mr McNamara consented last February to a €2.11 million judgment order against him in favour of Mr Smith and Mr Dougan. They sought the judgment over Mr McNamara’s failure to make all payments agreed in an October 2008 settlement of their proceedings.

Under that settlement, Mr McNamara was to pay €5 million to the plaintiffs by December 2008 and a further €2.5 million by January 29th last. The €5 million was paid but Mr Smith and Mr Dougan claimed failure to pay other sums due by January.

Judgment for €2.11 million was entered against Mr McNamara on February 15th.

Mr McNamara claimed the level of debts owed by Mr Smith and Mr Dougan to him was substantially greater than the €2.1 million judgment they obtained against him so there was no debt sufficient to entitle them to petition for his bankruptcy.