The sisters of Dublin cinema businessman Paul Ward are suing him for €31.5 million over payment for the acquisition of shares in various companies.
Jean Kennedy, a company director of Spawell House, Templeogue, Dublin, and Carol O’Riordan, a retired director of Temple Gardens, Rathmines, are suing Mr Ward, of Mount Merrion Avenue, Blackrock, Co Dublin in the Commercial Court.
Andrew O’Riordan, who holds enduring power of attorney for Ms O’Riordan, who has been diagnosed with Alzheimer’s disease, has been joined as a third plaintiff by virtue of his capacity as a donee of the power of attorney.
Their action against Mr Ward was admitted to the Commercial Court after Mr Ward did not object to the application. Mr Justice David Barniville fixed a hearing date next March for the sisters’ application for summary judgment for €31.5 million.
In their action, the sisters claim that, in April 2019, the parties entered into a binding “heads of terms” agreement whereby they would resolve their differences in relation to matters connected with various companies.
The heads of terms provided, among other things, that Mr Ward would procure the acquisition of certain shares owned directly or indirectly by his sisters for a total of €31.5 million, they claim. Some €25 million was to be payable by October 31st, 2019.
The parties agreed to do their best to ensure all sums paid to the sisters would be structured in a tax efficient way, they claim.
It was also agreed, if the money was not paid in accordance with the terms, that Mr Ward would consent to judgment for the outstanding balance.
The sisters, in their claim, alleged their brother proposed to use funds from the “the very companies” related to share acquisition.
This, they complain, would entail “a significant risk” to them as they would have to pay income tax on a large portion of the monies rather than capital gains tax which, at just 33 per cent, is considerably lower than what would be paid in income tax.
Despite being given an extension of time to make the €25 million payment, it was not made and a letter of demand for the full €31.5 million was sent to his solicitors threatening proceedings if it was not paid.
Mr Ward responded through his lawyers that he was willing to complete the purchase of the shares for €25 million but would not be paying €31.5 million. He was also agreeable to the matter going before the Commercial Court.
On December 5th last, without any advance notice, €12.5 million was lodged directly into Ms Kennedy’s bank account, €8.8 million of which had come from companies whose shares were to have been bought from the two sisters, it is claimed. On December 17th, another €6 million was paid into Ms O’Riordan’s bank account, apparently, with €3.1 million of it coming from the companies, it is further claimed.
The sisters say Mr Ward is not entitled to any reduction to what is owed because the purported payments did not comply with the heads of terms agreement.
As a result, they are seeking judgment for the full €31.5 million.
