A BRITISH Virgin Islands company has brought a legal action here against developer Paddy Kelly and two other businessmen in an attempt to enforce a $5.77 million judgment granted by a court in Florida.

The proceedings by Bussoleno Ltd for summary judgment against Mr Kelly, Clonmore, Shrewsbury Road, Dublin; Mr John McCabe, The Rath stud farm, Ashbourne, Co Meath, and Mr John Walsh, Tinnahinch, Plunkett Avenue, Foxrock, Dublin, were admitted to the Commercial Court yesterday by Mr Justice Peter Kelly.

After being told by counsel for the defendants they needed time to take instructions as the proceedings were served on them late last week, the judge said he wanted to be told this Friday whether there is any defence to the application.

The judge said the action was to enforce a judgment obtained in a Florida court on foot of a mediated settlement which was executed and not honoured. In those circumstances, he wanted to hear on Friday the “bones” of any defence because, if there was no defence, the case should not languish in court.

In its application, moved by Declan Murphy, Bussoleno claims it is entitled to summary judgment orders here on foot of a final judgment obtained in Florida on April 24th last in proceedings brought against the defendants.

The company claims the Florida court ordered it should recover US $5.75 million, plus interest at 8 per cent per annum, against the three defendants jointly and severally. It claims that judgment enforced a mediated settlement in proceedings involving Bussoleno against Irish American Management Services LP (IAMS) and Irish Management Services I LP (IAMSI) – both limited partnerships with offices in Sarasota, Florida – and the defendants.

It is claimed Bussoleno’s solicitors wrote on May 13th last to the defendants calling on them to pay the sum due, failing which proceedings would be issued.

Bussoleno claims the Florida court proceedings were brought under a complaint filed on January 28th, 2008, and sought to enforce Bussoleno’s rights under five promissory notes – four from IAMSI and one from IAMS. All of those promissory notes were guaranteed by the defendants, it is claimed.

In their defence to the Florida proceedings, the defendants made a third-party complaint against Rene Gareau which was answered by Mr Gareau, it is also claimed. A mediation conference was held and a mediated agreement was duly signed by the defendants, it is alleged.

It is claimed payments of $225,000 were made but the defendants failed to make a payment due on March 14th of $112,500. That led to a demand letter being issued on March 17th. Bussoleno claims no payment was made within 20 days of that demand letter and it then became entitled to final judgment for $6 million, less the $225,000 paid. A motion for final judgment was brought and was given on April 24th.

Bussoleno said it was concerned to have read in an Irish Times article last March that Mr Kelly was subject to a number of debt recovery proceedings in the Commercial Court and had said in an affidavit his liabilities exceed or may well exceed his assets.

In those circumstances, Bussoleno was very concerned about its position as unsecured creditor of Mr Kelly and was anxious to have judgment entered against him in the Irish courts.