Michael Lowry's assertion that he had no connection to the Doncaster project may be contradicted in a letter from solicitors acting for Kevin Phelan, writes Colm Keena
Correspondence between solicitors' firms in Dublin and England may indicate Michael Lowry was involved in negotiations to do with the Doncaster stadium deal, the Moriarty tribunal has said.
The stg£4.3 million deal was spotted by businessman Kevin Phelan and taken on by accountant Aidan Phelan, acting as agent. The men are not related. When the two men fell out, Kevin Phelan sought his fees and costs and both sides engaged solicitors.
Kevin Phelan used an English firm, Woodcock & Sons, and Westferry, the Isle of Man company which at that point owned Doncaster Rovers Football Club Ltd, engaged William Fry, solicitors for Denis O'Brien.
It was eventually agreed that Kevin Phelan would be paid £150,000. In return the William Fry firm looked for a narrative account from Phelan of his involvement in the Doncaster deal.
Instead of this Woodcock & Sons supplied William Fry with some documents, including a fax dated 1999 from Kevin Phelan to Aidan Phelan headed "Doncaster Project". Not all the items in the fax related to Doncaster, though item seven read: "ML. Kevin Phelan to refer all queries regarding Doncaster to Aidan Phelan."
William Fry recognised that this could be a reference to Lowry, and therefore could be relevant to the tribunal. In his opening statement earlier this week, Jerry Healy SC, for the tribunal, said it appeared Lowry's accountant, Denis O'Connor, was involved in trying to settle matters between Kevin Phelan and Westferry. Documents from William Fry suggest that he, O'Connor, suggested that the ML reference might be a reference to a Mike Lloyd, a name that has not been mentioned by the tribunal before, and which would make the document of no interest to the tribunal.
William Fry couldn't establish whether what O'Connor was suggesting was correct and sought an explanation through Woodcock & Sons in July 2002. "We understand that our respective clients have been in contact and that your client is prepared to give an explanation for that (ML) reference (as to its referring to someone other than Michael Lowry or to some other matter) and/or to confirm in any event that Mr Lowry had and has no interest in or connection to the Doncaster Rovers matter.
"We confirm that our client will complete the terms of settlement on receipt."
A strong reply came a day later from Woodcock & Sons. "It is our view that our client has done everything that is possible to agree satisfaction re terms. You will be aware that our client is in negotiations with your firm on behalf of Westferry Limited, LK Shields, Solicitors, on behalf of Bryan Phelan [brother of Aidan], together with Bryan Phelan & Company and also Denis O'Connor on behalf of his client, Michael Lowry. There are also issues concerning Aidan Phelan and Craig Tallents (an English registered accountant). The writer is liaising with Denis O'Connor in relation to these two individuals.
"Last Thursday, the writer, together with Kevin Phelan, met with Denis O'Connor. Previously, draft correspondence had been proposed by our client in relation to all parties and also a draft agreement in relation to Michael Lowry had been supplied. The terms of the draft letters and draft agreement were not satisfactory to Michael Lowry and Denis O'Connor. The key amendments to the agreements were amendments that Michael Lowry/Denis O'Connor required to protect themselves in relation to future claims."
"Our client now finds himself in a position where this matter is being further delayed in his mind for no good reason, and he finds himself being asked now to provide the impossible, which he is not prepared to do.
"Our client is extremely disappointed that, despite him doing everything that was lawfully possible to agree satisfactory terms of settlement, your client and those other parties associated to the above venture have not been prepared to crystallise terms of settlement. At this very late stage, your client now appears to be imposing an unreasonable condition. Due to the very serious implications of the request that is now being made by your client, we have been specifically instructed by our client to terminate negotiations."
However, 20 days later Kevin Phelan did supply a statement through his solicitors, to the effect that the ML reference was to Michael Lowry but that it related to the project in Mansfield in which Lowry was a shareholder.
Mr Healy observed: "Westferry solicitors, Messrs William Fry, appear to have accepted this explanation and to have sought no indication as to the basis for or reasoning behind it. They do not appear to have insisted on the statement that Michael Lowry had no connection with the Doncaster transaction."
Mr Healy said the tribunal would be looking into Woodcock & Sons' statement to William Fry that "your client and those other parties associated to the above venture", when the venture being referred to was the Westferry project, a project with which Lowry said he had no connection.
